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After months of wrangling and debate, the Toronto City Council legalized UberX as a transportation option in Toronto after a 27-15 vote on May 3, 2016. Mayor John Tory has promoted Uber as a viable alternative and has walked a careful line of trying to appease taxi companies while hearing the demands of the general public for Uber insurance.
The complicated new rules – about 20 pages in regulations – are an attempt to regulate both Uber and the taxi industry. The taxi industry is not happy with the new rules saying that the rules are unfairly biased against it.
The new bill from Toronto City Council introduces a new Private Transportation Companies (PTC) licensing category, including "ride sharing services" such as Uber and Lyft.
There are many new rules and things to know about auto insurance that will apply to Uber drivers and other ride sharing services if they want to operate in Toronto. Some rules for taxis have also changed in an effort to help make things fairer. Below is a summary of some of the key changes.
Uber as a company, provides 3rd party liability for its drivers. This coverage is not seen as adequate coverage for drivers and riders in Ontario. Aviva Insurance, in an attempt to address the need for existing customers, developed and launched a new product in February 2016, in spite of many challenges – including the lack of legislation for this new model of ride-sharing.
Aviva’s coverage is an add-on to Ontario car insurance. Greg Somerville, CEO of Aviva Canada says, "We're excited to offer a simple and affordable solution within a driver's existing personal auto policy, thereby providing drivers and passengers with an absolute peace of mind that they have insurance coverage while ride-sharing." It protects ride-sharing drivers from the time they respond to a request for a lift to when they drop passengers off.
There are some qualifications to get this coverage such as :
Learn more about the Aviva ride sharing coverage here or contact your insurer.
As more cities embrace ride-sharing services, insurers will likely develop new, innovative insurance products to keep customers – drivers and riders – safe and protected.
Uber and other apps like it, have ‘disrupted’ the transportation industry and how it meets consumers needs. This new legislation seeks to regulate both Uber and other ride-sharing services (like Lyft and TappCar) – in an effort to satisfy both sides of the field.
The taxi industry maintains that this legislation signals the end of the taxi industry. Uber and its supporters see this legislation as a “great day for riders in the city of Toronto, a great day for drivers as well using the Uber platform,” Said Uber’s Ian Black.
This legislation is a bold move to try to regulate taxis and Uber drivers fairly. Time will tell if Toronto’s legislation will bring a level playing field to the Uber drivers and taxi drivers. And time will tell if riders are better off with the new legislation.
Uber And Ride Sharing Services Now Legal In Toronto
May 4, 2016
Highlights Of New Rules For Uber (PTCs) And Taxis
Fares
Background Checks
Annual Licensing
Driver Licensing
Vehicle Safety Checks
Base Fair
Liability Insurance
Surge Pricing (can raise pricing based on demand)
Cameras And Emergency Lights
Uber And The Insurance Industry – So Far
Aviva’s Add-on For Ride Sharing Driver Coverage
Ride Sharing Services Are Changing The Transportation Industry
Other Ride Sharing Related Articles
Uber Challenges In Ontario – Insurance, Driving, Permitting & Taxi Drivers
Uber And Ride Sharing Insurance Coverage From Aviva
UberX will be allowed to operate legally in Toronto, city council decides
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