The chief executive of the Insurance Brokers Association of Ontario’s (IBAO) has said publically that while the body is not opposed to ride sharing companies such as Uber, he recommends consumers avoid the services until the insurance coverage gap is plugged.
After the IBAO’s first board meeting of 2016, which took place last week, Jim Murphy revealed that he had sent a letter to the director of licensing for the city of Hamilton, advising him that the IBAO “is optimistic that the insurance gap for ride sharing will be solved soon.”
Last year, Ken Leendertse, Hamilton’s director of licensing, warned Uber drivers in his city that they face penalties for operating an illegal taxi service.
Leendertse had asked the IBAO for its official stance on ride sharing operations.
“In principle, IBAO is not opposed to Uber or similar ride sharing companies; however, consumers need to be made aware that standard auto insurance protections may not apply to them if they are in an accident,” said Murphy.
Ride sharing is a new form of transportation that does not fit into the current rules and regulations, presenting coverage gaps that insurance companies are working to fill, Murphy explained.
“As of today, most ride sharing drivers are not driving with adequate insurance. The IBAO is advocating for proper coverage and policies for ride sharing drivers and their passengers, but until proper insurance coverage is available, IBAO recommends that consumers avoid using ride sharing applications.”
Two companies in Ontario, Intact and Aviva, recently indicated they will have policy options that will adequately protect passengers and drivers in 2016.