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The insurance side of Toronto’s proposed Uber regulations | Canadian Insurance
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The insurance side of Toronto’s proposed Uber regulations

All vehicles-for-hire will require $2M in passenger hazard coverage; Uber will also require a $5M CGL policy

Toronto regulations proposed Thursday mean cabbies and UberX drivers would face different rules for vehicle inspections, fares and police checks.

But all classes of vehicles-for-hire will be required to carry $2 million in collision and passenger hazard insurance coverage.

Read: Uber regulations should include insurance guidelines: report

“This amount reflects the higher risks associated with operating for-hire vehicles, as drivers of these vehicles tend to drive more frequently and carry more passenger than is typically the case with private-use vehicles,” the report explains. Uber and other private transportation companies can choose to provide insurance for their drivers or to require them to purchase their own.

PCTs will also have to carry a $5 million CGL policy as a consumer protection measure in case of, for example, company negligence in driver inspections or customer data loss after a cybersecurity breach.

Read: Auto insurance for the ride-sharing world

Drivers would also have to provide confirmation that their personal insurance company knows about their Uber activities, and Toronto would require PCTs to publicly disclose “a plain-language explanation of their insurance coverage, including detailed information on how to initiate a claim.”

Toronto City Council is set to vote on the draft rules on May 3-4.