Uber Canada has a $5 million insurance policy under sealed court order, but a spokesperson recently assured the Toronto Star: “We are confident our insurance model will provide coverage as it does in every jurisdiction where we operate.”
Waita Sindi, an UberX driver who was recently hit by another motorist while carrying three passengers, may have exposed a gap in this statement.
Sindi was driving his Prius down Islington Avenue when another vehicle collided into his when making a left-turn, the Star reports. Sindi and his passengers faced no injuries.
After initially being told by an Uber representative in Chicago that he had to pay a $1,000 deductible, this was later recanted. Since he was not at fault, his personal car insurance fronted the entire bill. But because he lacks commercial coverage, questions arise as to who would be responsible if he had been responsible for the collision.
This incident highlights a legal battle currently playing out in Ontario courts: the City wants to cease Uber’s operations, partially because of its ambigious insurance situation. The Supreme Court ruled last week that the company had to disclose the details of its heretofore "highly confidential" $5 million policy, and the city maintains that Uber “might not provide essential coverage to drivers, passengers and others in the event of accidents.”
While Uber insists its insurance requirements are spelled out in drivers’ contracts, Sindi said he was unaware of such language.
“They didn’t give me anything. I don’t know what Uber’s insurance is, I don’t know what their insurance company is, I didn’t even know who to call locally,” he told the Star.
Still, the ride-sharing platform asserts that its insurance coverage are adequate for drivers and passengers alike.
In an email to the Star, it reiterated that the public can be “rest-assured” that UberX operators are sufficiently covered by a commercial auto policy backed by an A+ rated company.
