Ontario Proposing Changes to Allow Ride-sharing Insurance

The government of Ontario is set to authorize reforms to the insurance system that would allow ride-sharing companies, such as Uber and Lyft, to qualify for the same fleet insurance that is available to taxi and limousine companies. Currently the only insurance available for ride-share drivers is a product developed by Aviva, which acts as an add-on to personal insurance. New “fleet” insurance would allow a ride-sharing company (such as Uber) to purchase the insurance, rather than leaving it to its individual drivers. Drivers would still be required to have their own personal insurance.

The new proposal would define a “fleet” as a group of not less than five automobiles, of which at least five are commercial or public vehicles, or vehicles used for business purposes that meet the following two sets of criteria:

Set A:

(i) The automobiles are under common ownership or management, and

(ii) Any automobiles that are subject to a lease agreement for a period in excess of 30 days are leased to the same insured person

Set B

(i) The automobiles are available for hire through a common online-enabled application or system for the pre-arrangement of transportation, and

(ii) The automobiles are insured under a policy of automobile insurance in which the automobile owner or lessee, as the case may be, has coverage as an insured named in the contract


Potential respondents have until May 25 to comment on this proposal. More information can be found here.




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