Uber, the rideshare application, is here to stay in
Toronto. What riders and drivers need to understand is there
can be issues regarding coverage should you get into an accident
while riding in an Uber car, or are involved in a collision with a
vehicle being driven by an Uber driver.
Accidents Occurring Before July 2016
If a rider or a driver had an accident with an Uber driver where
the Uber driver was at fault prior to July 2016, the insurer of the
Uber driver may deny third party liability coverage to the Uber
Under the standard policy of insurance that is provided to
individual drivers in Ontario, there is an exclusion clause that
states that coverage may not be extended to the driver if the
automobile is being used to carry passengers for compensation. In
the circumstances where an Uber driver's insurance does not
extend third party liability coverage to the driver, this leaves
the Uber driver personally exposed to a claim for damages resulting
from injury if the Uber driver is at fault.
If the Uber driver is also injured in the accident, they will be
restricted as to what no-fault Accident Benefits they will be able
to receive under their policy of insurance. Should the insurer
find a breach of the policy, the available Accident Benefits would
be limited to medical rehabilitation benefits only. The driver
would not be entitled to income replacement benefits, non-earner
benefits or compensation for other expenses.
This also leaves the injured party in a predicament regarding
insurance coverage. For individuals injured who do not have
their own policy of insurance, the third party coverage limits are
reduced to a maximum of $200,000.00 when the insurer finds
there is a breach of the policy on behalf of the Uber
driver. For injured individuals carrying a policy of auto
insurance on their own vehicle, they may sue their own insurer
under the OPCF-44R endorsement which would allow the limits of the
liability coverage to be increased from $200,000 to the maximum
under their own policy.
Uber Intact Insurance
As of July 2016, Uber drivers are now covered under the Uber
commercial policy that is offered through Intact
Insurance. Uber drivers must also carry a personal auto policy
for when the Uber application is not in use. The owners of the
vehicle are responsible for informing their insurer that the
vehicle is being used for ride sharing.
When the Uber application is in use, the Uber commercial policy
kicks in. What Uber drivers and those who get in accidents
with Uber drivers need to know is that this policy of insurance is
offered in phases which have different corresponding insurance
The first phase is from when the app is turned on and before the
driver accepts a trip. During this phase, the Uber driver is
covered for a maximum of $1,000,000 third party liability
coverage. The next phase occurs from when the driver accepts
the trip, through when the passenger is in the vehicle, and ends
when the passenger exits the vehicle. Under the commercial
policy for this interval, Uber drivers are covered for a maximum of
$2,000,000 third party liability coverage. After the
trip ends and the Uber application is switched off, the insurance
coverage reverts back to the driver's personal policy.
It is anticipated that more insurers will offer this coverage or
a similar type of coverage to Uber drivers in the future.
This insurance is important as it allows both the Uber driver to be
protected from being personally exposed should they be sued and
also protects individuals injured when involved in a collision with
an Uber driver.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Under B.C.'s former and current Limitation Act, the limitation period for a Plaintiff's claim can be extended on the basis of a Defendant having acknowledged in writing some liability for the cause of action.
Automobile drivers, like fine wine, tend to get better with age. Older drivers can draw on a wealth of experience from their years on the road to assist them when faced by a variety of dangerous conditions.
The insurance industry will be interested in Ledcor Construction Ltd v. Northbridge Indemnity Insurance Co because of principles the Supreme Court of Canada applied to the "faulty workmanship" exclusion in a Builders' Risk policy.
For the first time in BC, a Court has decided that an insured is entitled to special costs, rather than the lower tariff costs, solely because they were successful in a coverage action against their insurer.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).