After the Public Utility Board approved Manitoba Public Insurance’s interim plan for vehicles for hire Monday, the question now shifts to whether Uber and Lyft will follow through with threats to skip over Manitoba.
In a submission to the PUB last week, Uber expressed disappointment that MPI wanted to insure drivers based on hours worked instead of a blanket policy.
The crown corporation’s plan requires would-be drivers to pay up to 20 per cent more for insurance, though that number could go down depending on which “time bands” drivers choose to participate in.
“If they want to offer services on the weekend or at night because they work full-time during the day, then they would be able to select those specific time bands and the premium would be reduced even further from that 20 per cent,” explained Ward Keith, MPI’s Vice-President of Communications.
“If you assume $1,200 a year is the average premium, we’re talking just over $200 for an entire year, which equates to about 65 cents a day.”
Uber has said this model is different from other jurisdictions, and that without a blanket policy it would be “too difficult to do business in Manitoba” because it would be too risky.
In response to that, MPI has offered some form of blanket coverage for the companies.
“It will ensure that these organizations are fully protected in the event that one of their operators in Manitoba is involved in a collision and may be operating without the proper insurance,” Keith said. “From a financial and reputational liability perspective, we believe we can address that to the satisfaction of these ride-share providers.”
Keith also noted that this plan is subject to change down the line once MPI has data on how many claims involve vehicles tagged for ride-sharing.
“It doesn’t really matter what’s going on in other jurisdictions. What does the collision and claims experience look like for ride-share operators in Manitoba?” Keith said. “Based on that experience, that will drive rates moving forward. If their experience is no worse than a regular passenger vehicle owner, their rates will come down.”
Keith reiterated that talks are ongoing with Uber and Lyft. He said he is confident that MPI can find a way to work with ride-sharing companies to make it as easy as possible for them to enter the Manitoba market, though the crown corporation is still being met with some resistance.
“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,” an Uber spokesperson said in an email to Global News. “We look forward to continuing to work with MPI and the Minister of Crown Services to find a way forward that expands Manitoban’s access to safe, reliable transportation options like Uber.”