(Photo credit: Alexander Torrenegra/Flickr)
Uber’s ride sharing service has been touted as disruptive technology that could change our local cab industry, but some details of the service have municipal governments concerned.
Last November, the city of Toronto filed an injunction against UberX to put a stop to its ride sharing service due to concerns that it was putting residents at risk. Some of the issues pertain to how drivers were hired, trained and the insurance coverage that is available to drivers and their passengers.
Earlier in March, Uber filed an injunction asking the Ontario Superior Court of Justice to allow the company to seal the details of its insurance policy as they claim once its disclosed, it’ll affect its competitive advantage, according to the Toronto Star.
The insurance policy covers up to $5 million for drivers, but the company is secretive with the details and very few people have seen it, according to the Star. The company is concerned that since the insurance policy isn’t a standard automobile liability policy, if it’s made public, competitors will be able to copy its terms.
“I am not aware of any insurance policy that provided such coverage (or even similar coverage) for this use in Canada, prior to the development of the insurance policy,” said Henry Gustav Fulder, director of insurance for parent company Uber Technologies Inc., in an affidavit, which was quoted by the Star.
The request to seal documents is likely related to the City of Toronto’s injunction, which was scheduled for May, where insurance coverage is a key issue in their case, says the Star. Both sides participated in hearings that wrapped up in early June with the judge ruling that the ridesharing service should not be halted.
The City of Mississauga also began the legal process to file an injunction against Uber, but it held off until the results of Toronto’s injunction.
Currently, Uber also operates in several Canadian cities including Ottawa, Montreal, Quebec City and Edmonton with plans to launch in Gatineau and Hamilton.
The service has faced criticism about liability if an Uber driver and passenger are involved in an accident and whether the individual driver has enough car insurance. Recently, Uber signed a deal with Metromile, a car insurance service that lets riders pay per mile, which offers insurance coverage for Uber drivers in Washington, Illinois and California when they’re driving on behalf of Uber. A device is plugged into the driver’s vehicle to monitor their driving.
There have also been privacy concerns raised about an employee’s use of Uber’s God View tool that lets the company track people’s locations.
While the cheaper cost of a ride may entice you to try the service, be aware that you might be doing so at your own risk.
Whenever you’re involved in a motor vehicle collision, accident benefits are available to you, no matter your role in the incident. The personal injury and accident lawyers at Neinstein Personal Injury Lawyers have been dealing with all accident related issues throughout Ontario for over 45 years. We know how to get you the compensation that you deserve and get your life back in order after being in a car accident. Call us at 416-920-4242, set up a free consultation, and come speak with us.
Greg Neinstein
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