In a previous article (here) the steps to an accident benefit claim, and a tort claim, were explained. Now we turn to liability in the case of ride sharing services. As a passenger of a ridesharing service, or as an accident victim of a ridesharing driver, it is very important to know your legal options.
Since 2014 the sheer number of ridesharing service operators in Ontario has skyrocketed. This alternative to traditional taxis has created a competitive marketplace, where consumers have more choices on their preferred mode of travel than ever before. In fact, in 2017, before Lyft made its debut in the Toronto area, over 50, 000 residents had downloaded the app.
However, while the aforementioned facts have been largely hailed as great news for commuters, it has created a gray area in terms of insurance coverage.
If a person had an accident with an Uber driver, prior to July 2016, it is possible that the insurance of the driver may deny third party liability coverage. This is compounded by the fact that the standard insurance policy, for individual drivers, stipulate that coverage may not extend to the driver, if the vehicle is being used for carrying passengers in exchange for compensation. What this all means is that the Uber driver can be left personally exposed for any damage claims where they are at fault.
However, as of July 2016, Uber drivers are now covered under a commercial policy. While Uber drivers must still have their own insurance coverage for when the Uber application is not in use, and the coverage only kicks in once the personal coverage has been exceeded, it does at least offer a level of protection for passengers. The amount of coverage is based on different phases of the transaction. While the app is turned on, the Uber driver is covered by $1, 000, 000 third party liability coverage. The moment the driver accepts a ride request, all the way through to the passenger departing the vehicle, this coverage is increased to $2, 000, 000.
The path to recovering damages against an Uber driver is the exact same as how one would with an at-fault driver. That is, you would first have to go through your own insurance for accident benefits, if you have any, and only after would you go to the insurance of the Uber driver. In terms of the tort claim, the at fault driver’s insurance company would be the one to be sued.
It is of the utmost importance that the victim of the accident collects as much information as possible. Information such as the name of the driver, the police report, and your own insurance records can be very helpful. While your lawyer can help in collecting the evidence, your participation can speed up the process. As this can be a very traumatic time, and memory is not always the most reliable, if safe to do so, we recommend taking photos, or notes, of the accident, the driver’s licence of everyone involved, licence plates, and the policy number of each driver.
At this point you might be thinking “but what about Uber/Lyft the company? Can I sue them for recovery?”. Generally speaking, the answer is no. That is because the drivers are treated as contractors and not employees. As such, there is no vicarious liability, and the company is generally not responsible for the negligent or wrongful actions of their independent contractors.
While this would hopefully become rarer with the mandatory insurance now required to become a ridesharing driver, if the driver is uninsured, the victim of the accident would have to apply to a government fund, which was created to protect those who have been in uninsured accidents.
If you become injured by a driver of a ridesharing service, or are the passenger of one involved in a collision, you should always contact a lawyer. An experienced lawyer will help to maximize any potential monetary recovery, and can assist you in navigating the legal system.
