One Canadian province has developed an alternative to Uber Canada that could appeal to brokers and consumers alike, and finally bridge the service’s longstanding coverage gap.
Tensions between insurance brokers and Uber Canada continue to intensify, particularly after news that an UberX driver had his property and medical benefits claims denied by both his insurer and the Uber organization after a June collision in Toronto.
One Canadian province, however, may have devised a solution that appeals to insurance brokers, consumers and government regulators – if not necessarily Uber.
A company in Quebec has developed a mobile app called Paxi, which operates similar to Uber in that users can request a cab from their smartphone, follow along with its GPS location and then pay on their phone using a credit card, according to CTV News.
The difference between Paxi and Uber, however, is that Paxi’s motor vehicles are all licensed, regulated and have legally compliant commercial auto insurance coverage.
Brokers are optimistic the app, which has the potential to combine consumers’ love of mobile-based ride sharing with properly insured services, will catch on.
“It seems that this could be an alternative, and that they’re trying to accept the fact that Uber exists and figure out how to deal with it as a province,” said Paul Armstrong, partner, Paul C. Armstrong Insurance.
While he’s encouraged by this development, Armstrong stressed that some kinks may need to be worked out before Paxi can be implemented in other provinces.
“Quebec operates a different form of insurance from other provinces, and it’s not as expansive as the accident benefits in Ontario,” Armstrong said.
He adds that Ontario may need to await a legal outcome of the UberX case before a similar mobile app can be rolled out, since it’s possible that many insurers could still be cautious of on-demand ride services.
In the meantime, he hopes that brokers continue to actively inform policyholders about the company’s coverage gap before another incident such as the Toronto collision occurs.
“The industry has a duty to remind society that they might not be adequately insured if they use their vehicle as an Uber driver and that they must consult with their agent, broker and insurer to obtain the proper coverage,” he said. “But our provincial and municipal officials also have a duty to express themselves about the negatives surrounding ‘Uberism’ and to caution both potential passengers and drivers accordingly.”
