Alberta approves ride-sharing insurance policies
The province of Alberta has become the first in Canada to approve a new insurance policy form to cover transportation network companies (TNCs), more commonly called ride-sharing companies.
The new policy form will allow TNCs to cover their drivers under government-regulated insurance policies. Ride-sharing in the country has struggled to gain a major foothold and two of the main obstacles has been the process of adjusting regulations and addressing insurance shortcomings. While Alberta isn’t the first province to have ride-sharing insurance, it is the first to offer coverage for the ride-sharing companies in addition to the individual drivers.
According to the government release, the insurance coverage will be just one of several regulations TNCs will have to abide by to operate legally in the province. The regulations are focused around providing an acceptable standard of safety for what many view as a wild west approach to transportation service.
The laws also allow for insurance companies to offer coverage extensions for ride-sharing. That means that drivers can make sure they’re covered even if driving for a company that doesn’t have coverage for them. While traditional taxis use commercial insurance that is often far more expensive than regular insurance, the new policy form provides an in-between solution that makes the part-time nature of ride-sharing more affordable from an insurance perspective.
The regulations are designed to work alongside city bylaws meaning that not only must companies abide by the provincial regulations but the city regulations as well. That means that while the new laws mean Uber will return to Edmonton, you won’t be seeing them in Calgary.