MPI’s ride-hailing insurance plan gets green light despite Uber opposition

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This article was published 16/01/2018 (2979 days ago), so information in it may no longer be current.

The Public Utilities Board has given its blessing to a vehicle insurance plan for ride-hailing services that has previously been rejected by industry giant Uber.

Late Monday, the PUB approved an application by Manitoba Public Insurance to establish a new rate category for “vehicles for hire,” according to MPI.

Rates are to be lower than for taxi cabs, and will differ depending on what time of day the driver wishes to pick up passengers or whether it’s on a weekday or weekend.

Despite disagreeing with the MPI proposal in a recent submission to the PUB, a company spokeswoman said Uber Canada is looking forward to working with MPI “to find a way forward that expands Manitobans’ access to safe, reliable transportation options like Uber.”

Uber continues to want to be allowed to buy its own blanket commercial insurance for all its drivers, Susie Heath said in a statement Monday night.

In its submission, Uber Canada had argued this would ensure consistent coverage and prevent drivers — most of whom drive five to 10 hours per week for less than a year — from becoming “individually burdened” by the cost of commercial ride-hailing insurance.

“Based on the deficiencies in the MPI proposed product versus the type of insurance that is available to ride-sharing companies in cities across North America, Uber will, unfortunately, be unable to consider expansion of services to Winnipeg on March 1, 2018,” Uber Canada said in its submission.

Late last year, MPI announced it was creating a separate class for ride-sharing company drivers with the cost based on four “time bands.” The bands cover different weekday and weekend shifts. MPI said drivers could pay for one band, different band combinations or all of them.

In a news release Monday, MPI said the maximum rate vehicles-for-hire operators will be charged is 20 per cent above the standard all-purpose rate. MPI said it is comparable to what is charged in other jurisdictions. Drivers can reduce premiums depending on the time bands they select, the public auto insurer added.

MPI said its system will ensure regular passenger vehicle owners do not subsidize the claims of ride-share providers — just as they don’t subsidize claims costs for taxi operators and commercial truckers. The Crown corporation said it will also adjust rates over time based on actual claims from the new insurance group.

“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,” said Ward Keith, MPI vice-president of business development and communications.

The PUB did not issue a press release of its own Monday, nor was a copy of its decision available on its website. 

An MPI spokesman said the corporation was notified by the PUB of its decision in the late afternoon.

larry.kusch@freepress.mb.ca