MPI insurance plan to cover ride-hailing companies approved
Uber, Lyft critical of insurance proposal that would see drivers select add-ons to their personal coverage
Manitoba's Public Utilities Board has approved a new insurance plan that would cover drivers for ride-hailing companies like Uber and Lyft, MPI says.
"With this ruling, the corporation looks forward to continuing discussions with ride-share service providers such as Uber and Lyft with a view to welcoming them to the province of Manitoba starting on March 1," MPI vice-president of business development and communications Ward Keith said in a written statement Monday.
The new vehicles-for-hire insurance plan will see drivers choose add-ons to their personal coverage, selecting different "bands" of coverage depending on when and how frequently they plan to work. MPI touted the system as providing flexibility to drivers to tailor their coverage.
But Uber and Lyft both criticized the proposal last week and said the rules could prevent either company from entering the Manitoba market.
- Uber says MPI insurance proposal could keep it out of Winnipeg
- Uber drivers could pay $1,000s less than cabbies for insurance, MPI say
On Monday, both companies reiterated those concerns.
"Uber continues to believe a blanket policy designed to cover all drivers during rideshare activity is the best insurance model for a number of reasons, including that it facilitates compliance for rideshare drivers," Uber spokesperson Susie Heath wrote in an email to CBC News.
"We look forward to continuing to work with the MPI and the Minister of Crown Services to find a way forward that expands Manitobans' access to safe, reliable transportation options like Uber."
"We see tremendous opportunity for Lyft in Winnipeg. Unfortunately, the current insurance framework would not allow true ridesharing to operate in the province," Chelsea Harrison, a spokesperson for Lyft, told CBC News in an email.
"We look forward to continuing to work with the Manitoba Public Insurance Corporation to find a way forward that puts prioritizes public safety and consumer choice."
Blanket coverage for companies
Ride-hailing companies are eligible to enter to operate in Winnipeg on March 1.
Under the new framework, MPI will offer a blanket insurance policy to the companies, "to ensure that these platform providers are fully protected from financial and reputational risk in the event that one of their Manitoba operators is involved in a collision and is determined to be improperly insured while operating on the platforms."
However, individual drivers will also have to purchase insurance "at the vehicle level," the release states, based on declared vehicle use. Uber has said that in other jurisdictions, the company can purchase insurance on drivers' behalf.
"Doing so ensures that regular passenger vehicle owners will not subsidize the claims costs of ride share service providers, just like they don't subsidize the claims costs for taxicabs or commercial trucks today," the release reads.
Uber raised concerns about the "individual nature" and time-band portion of the coverage in its own submission to the PUB, saying they will create "friction" for drivers forced to make changes to their personal insurance and don't reflect many drivers' varying schedules.
Last week, Mayor Brian Bowman urged MPI and the Public Utilities Board to find a way to make it work with Uber and Lyft.
In the release, Ward said MPI is looking forward to more conversations with both companies.
"Manitoba Public Insurance looks forward to continuing ongoing dialogue with ride share service providers such as Uber and Lyft to make it as easy as possible to enter the Manitoba market and begin offering their services to Manitobans starting March 1," Ward said.
Time band options for vehicle-for-hire drivers:
- Monday through Friday, 10 a.m. to 3 p.m. and Sunday through Thursday, 7 p.m. to 11 p.m.
- Nightly, 11 p.m. to 7 a.m.
- Monday through Friday, 7 a.m. to 10 a.m. and 3 p.m. to 7 p.m.
- Friday, 6 p.m. through Sunday, 11 p.m.