Canadian Underwriter

Province’s ridesharing law requires minimum policy limit

December 1, 2017   by Canadian Underwriter

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Saskatchewan has introduced legislation allowing for ridesharing services to operate in the province, with an interesting insurance twist.

The Vehicles for Hire Act requires the ridesharing company to file written evidence of a motor vehicle liability insurance policy with a minimum limit of $1 million, Saskatchewan Government Insurance (SGI) reported. The company must also insure every vehicle used to provide service under the Automobile Accident Insurance Act.

The act sets out the framework for ridesharing services, also referred to as “transportation network companies” (TNC) in the legislation, SGI said in a release Friday. These services provide a vehicle and driver for pre-arranged transportation through a digital platform or app.

Every TNC must also provide the following to an insurer:

  • The TNC’s name and principal place of business in Saskatchewan or the name and address of the TNC’s agent or representative in Saskatchewan;
  • The name and address of all drivers providing vehicle-for-hire services for the TNCs in the province, as well as a list of all vehicles providing the service;
  • The geographic scope of the TNC’s operations in the province;
  • Proof the TNC is licensed to operate as a TNC; and
  • “Additional prescribed information or information that the insurer may reasonably require.”

Among the other items in the legislation:

  • Municipalities continue to be able to make bylaws that also govern ridesharing companies in their town or city;
  • Mandatory criminal record checks for all drivers (rideshare, limousines and taxis); and
  • A prescribed driver’s licence class that will apply to ridesharing company drivers, taxis and limousines.

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