Jim Karygiannis, Councillor for Ward 39, hosted a “technical briefing” at Toronto City Hall to discuss UberX insurance concerns, and although the ride-sharing service was not in attendance, industry representatives effectively conveyed a message likely to resonate with Uber drivers themselves.
“We highlighted the Ontario auto policy requirement in Section 1.4 which states that you, as the insured, must promptly tell an insurance company of any change in information that was supplied in the original application, such as additional drivers or changes in the way the automobile will be used, such as using the vehicle for business purposes,” said Karageorgos.
Karageorgos, who says that the IBC receives inquiries about this “all the time,” feels that this conference served as a valuable opportunity to reiterate the message that anyone who is interested in transported passengers for compensation should contact their agent or broker immediately.
“We had a couple councillors there, as well as staff from Mayor Tory’s office and the media,” said Pete Karageorgos, director, consumer and industry relations,
Insurance Bureau of Canada.
Philomena Comerford, president of Baird MacGregor Insurance Brokers, spoke at length to shed light on underinsured Uber drivers, and pointed out that they need an additional $23,000 in coverage to abide by provincial laws.
Organizers of the conference hope that this approach of reaching out to Uber drivers directly will serve as a powerful weapon in educating the public about those insurance requirements.
“We highlighted the Ontario auto policy requirement in Section 1.4 which states that you, as the insured, must promptly tell an insurance company of any change in information that was supplied in the original application, such as additional drivers or changes in the way the automobile will be used, such as using the vehicle for business purposes,” said Karageorgos.
Karageorgos, who says that the IBC receives inquiries about this “all the time,” feels that this conference served as a valuable opportunity to reiterate the message that anyone who is interested in transported passengers for compensation should contact their agent or broker immediately.
Some carriers in the United States have developed hybrid personal-commercial policies tailored for ride-sharing purposes, and Karageorgos feels that a similar solution is imminent in Canada.
“Insurance companies are in the business to protect consumers and sell a product,” he said. “If there’s a new product need, I’m sure that insurance companies would like to meet those needs. It’s just a question of when that’ll happen, but I’m certain it will.”
He points out that provincial auto insurance providers will likely lead the way, since they have fewer hurdles to overcome than those in private markets.
“If you’re in a government-run auto insurance jurisdiction, I’d suspect that it’d be a simpler process to create product, especially if it’s the government insurer that has to approve that product,” he said. “Here in Ontario, the industry needs to go to a regulator and get approval for new products, which can be a little bit of a more involved process.”
