Aviva to offer insurance for UberX drivers

Drivers who operate ride-share services like UberX could soon have insurance that covers them, if a new policy proposed by insurance provider Aviva comes to fruition.

The policy, which could be added to existing personal policies, was announced by Aviva on Wednesday, and is squarely aimed at services like UberX, spokesperson Glenn Cooper said, though he added the policy will also cover other services that might pop up in the future.

“Uber is obviously aware [of the policy], but this is a product from Aviva,” he said.

Aviva has yet to formally file the policy with insurance regulators, despite touting a February start date in their announcement. Cooper said he expects the company to file “very soon.”

It’s the second time a company has proposed a ride-sharing insurance policy. In September 2015, Intact Insurance announced a similar policy, with no expected start date. They have also not formally filed with regulators, a spokesperson confirmed Wednesday.

The announcement comes in the midst of growing pressure among insurance providers to answer a question over whether modern ridesharing services require commercial or personal insurance.

Pete Karageorgos, spokesperson for the Insurance Bureau of Canada, said he expects other companies will follow suit with similar announcements.

“It’s a competitive environment out there. Companies are going to make decisions in terms of meeting customer needs,” Karageorgos said.

Aviva had previously cancelled insurance policies for drivers found to be working as drivers for UberX.

Uber has previously said the $5 million of contingent auto liability insurance its drivers are covered by means every ride is sufficiently insured.

Susie Heath, a spokesperson for Uber, said the company is “encouraged” by Aviva’s announcement.

“We remain committed to working with insurance companies and regulators across Canadian jurisdictions to quickly offer viable insurance products that embrace ridesharing,” Heath said in an e-mail.

Critics of UberX have argued the company isn’t sufficiently insuring its drivers. Kristine Hubbard, spokesperson for Beck Taxi, said the announcement by Aviva highlights the lack of proper insurance UberX drivers have.

“Based on today’s laws … UberX is operating illegally and without sufficient insurance of drivers and passengers,” Hubbard said.

A spokesperson for Finance Minister Charles Sousa said in an email that the ministry “is committed to supporting the ongoing development of [the sharing economy] while promoting a level playing field for businesses and ensuring consumers are protected.”

Aviva’s policy, if it gets approved, will limit drivers to 20 hours of for-profit ridesharing a week. Cooper said that decision was based on the company’s belief that most drivers using services like UberX do so on a part-time basis. Those who drive full-time will not have an insurance option when the policy launched, he said.

“If you’re doing this over 20 hours we need to have a different conversation. Are you becoming a full-time taxi driver,” he said.

The policy will hopefully not only be attractive to UberX drivers, he said, but other workers in the sharing economy, such as delivery services.

“This is just going to continue to evolve, and we’re going to continue to evolve with it,” Cooper said.