The Uber debate is one that continues to rage on in Canada.  A number of issues are being debated, the most significant of which are public safety and liability insurance.

While the days of sticking an arm out or calling a taxi from home are still a common and available option, many people are now turning to the Uber service as a cheaper and arguably, a more reliable transportation service.

Uber refers to an app-based ride sharing service that was founded in 2009 and is now available across the globe.  It works through the GPS capabilities of a phone and connects riders and drivers who are in close proximity, charging a fee to the customer’s credit card and depositing the balance to the driver’s account (after removing a five to twenty percent facilitating fee).

When a person uses this service, some critics say individuals are riding ‘at their own risk’ because there are fewer regulations governing Uber drivers versus traditional taxi drivers, particularly with respect to insurance and background checks.

In Canada, all Uber drivers must pass a background check, however, there were initially safety concerns with Uber’s background check process wherein drivers were being approved in under a week.  By May 2015, Uber tightened up this process, which now includes a criminal check against the RCMP (Royal Canadian Mounted Police) database as well as a driver’s violation check; this reflects the same requirements as screening of taxi drivers for  the City of Toronto.

Conventional taxi drivers in Canada must be covered by commercial insurance and must carry a minimum of $2 Million in liability insurance, which is more comprehensive and costly than most personal insurance coverage.  The Insurance Bureau of Canada has cautioned that it is unclear whether Uber drivers are required to have commercial insurance. Uber drivers have been warned that personal insurance will not cover them if they are involved in a collision or if a passenger is injured.

Uber Canada maintains that Canadian passengers, pedestrians and other motorists are covered by a company plan for $5 Million of contingent auto liability insurance, in addition to whatever insurance coverage that the Uber driver may have.   However, there may be some risk of inadequate coverage for the Uber drivers themselves.  Uber drivers with only personal insurance may not be covered, for example, if they are in a collision en route to pick up a passenger (so they are engaged in a commercial activity) but do not yet have any passengers in the car (thus not covered by the Uber Canada policy).

In June of 2015, the City of Toronto began a court battle with the fast growing ride-sharing company in the hopes of stopping Uber from operating in the city.  In addition to criticisms over a lack of regulation governing Uber drivers and service, City of Toronto officials have made claims that public safety is at risk. One of their charges is that there are no mandated mechanical safety checks for Uber vehicles, in contrast to licensed cabs which must submit to an inspection twice annually with the City of Toronto.  In response to these criticisms, Uber has reported a new policy requiring prospective drivers to submit their vehicles to a 26-point mechanical inspection by a certified mechanic.

We face risks every day and the decision to hop into a cab versus an Uber vehicle is something that we may all need to reflect on.  We rely on governmental regulations and safety standards to protect us in our everyday lives but it is important that we ourselves are knowledgeable about personal decisions that may place us at greater risk, as well.

If you have been injured in a vehicle accident, whether you were riding in a taxi/Uber service, public transit or a personal vehicle, we invite you to call us at Burn Tucker Lachaîne.  We will assess the specifics of your case and offer you professional and knowledgeable advice on the strength of your claim and the most effective steps towards achieving maximum compensation for your injuries.

Call us today or visit us online and take advantage of a free initial consultation at your earliest convenience.

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