Insurance changes for ride-hailing in B.C. approved
Credit to Author: Jennifer Saltman| Date: Fri, 09 Aug 2019 12:57:38 +0000
The Insurance Corp. of B.C.’s new insurance for ride-hailing has been approved and is ready for when companies can apply beginning next month to start service in B.C.
“ICBC has been consulting with the industry and looking at … solutions that better fit their needs,” said Myrthee Blanco, senior director of product and customer strategy for ICBC. “It’s great news, great progress.”
The B.C. Utilities Commission approved ICBC’s application to make changes to its rates late last month. The changes go into effect on Sept. 16.
Once they have received approval to operate from the Passenger Transportation Board, companies like Uber and Lyft will be required to buy a “blanket” insurance certificate that covers vehicles that are used for ride-hailing.
That mandatory basic insurance will cover all drivers for up to $1 million in third party liability and $300,000 in accident benefits.
The insurance premiums are based on kilometres driven and the zone — there are three — where a passenger is picked up. One zone includes the Lower Mainland, another includes Maple Ridge, /Pitt Meadows, Pemberton, Hope, the Fraser Valley, the Okanagan and southern Vancouver Island. The third zone covers the rest of B.C.
Distance-based pricing is used for similar services in several jurisdictions, including Ontario, Saskatchewan and Alberta.
Rates will gradually rise over a 10-year period.
Blanco said companies will have the option to purchase additional insurance, which they usually do, with ICBC or private brokers.
Ride-hailing drivers will not need to get special insurance. They will need to have a Class 4 professional licence and their own auto insurance that covers them when they’re not working, or when they are available to drive but have no confirmed ride. When they are en route to pick up a passenger or on a trip with a paying passenger in the car, the ride-hailing company’s blanket insurance will kick in.
“We have an option for our customers, should they feel like the … company that they’re working for doesn’t have the amount of coverage that they actually have on their own insurance, they’ll be able to top it up and increase their coverage so they don’t have increased exposure when they drive” for a ride-hailing company, said Blanco. However, that additional insurance will not be mandatory.
ICBC also developed a new kind of insurance for vehicle sharing, or peer-to-peer vehicle rental services, like Turo, Outdoorsy or Getaround. It’s also a blanket insurance policy that will be purchased by the platforms and cover the vehicle owners, but it’s priced daily. The pickup location and vehicle type will determine the price.
Blanco said this is being done in anticipation of these companies setting up shop in B.C. Outdoorsy is already here for RV and trailer rentals.
“It makes it easier for the customers,” said Blanco.
ICBC also updated taxi insurance “to make rates more reflective of risk.”
The rate changes will be on average an increase of 1.6 per cent a year — some taxi operators will face rate increases while others get decreases. The changes will be implemented over 10 years and affect about 3,000 taxis in 80 fleets, as well as 150 individually rated taxis.