Winnipeg rideshare drivers will face greater scrutiny of their auto insurance policies after a Manitoba Public Insurance (MPI) review found many are operating without proper coverage.

Uber and Lyft are among the approved rideshare providers in Winnipeg, which are determined by the city. When they apply to use the platforms, drivers must prove they are insured to operate as a vehicle for hire by MPI. This helps to ensure that they are paying their fair share of premiums and cost claims, Satvir Jatana, president and CEO at MPI, said at a news conference Thursday.

Approximately 3,000 drivers were temporarily halted from operating rideshares in Winnipeg from February to August of this year, due to a lack of proper insurance, she said. Some drivers were said to have opted in to the rideshare coverage to be approved for the apps, then switched back to basic coverage while continuing to offer customers rides.

“Vehicle for hire coverage is designed to account for the additional risk associated with rideshare drivers being on the road more. When the vehicle owners choose to change their required coverage, and continue providing rideshare services, that risk is no longer reflected in the premiums that they should pay,” Janata said.

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“That is fraud. Plain and simple. It creates an unfair advantage for those who choose not to follow the rules and shift those costs onto other honest drivers and Manitobans.”

A preliminary assessment by MPI identified 36 claims, worth around $189,000, involving improperly insured rideshare drivers, Janata said, adding that the Crown corporation is working on recovering those funds.

“We will continue to hold those individuals accountable to ensure that they have the appropriate coverage. And they are responsible for paying their fair share,” she said.

MPI’s legal team is reviewing options to recover those funds. The public insurance president said it “will pursue all options that are afforded to us under the legislation,” when asked if law enforcement is involved with the alleged fraud.

Grant Heather, manager of vehicles for hire at the City of Winnipeg, told reporters that drivers who were actively driving without the appropriate insurance were issued penalty notices under the vehicle for hire bylaw. His department regulates rideshare drivers and collaborates with MPI.


“Ultimately, this joint approach helps protect passengers, drivers and the public while supporting a fair and accountable vehicle for hire industry,” Heather said.

Owners of vehicles that are acting as a rideshare without the appropriate insurance in Winnipeg can face a $1,000 bylaw fine.

A spokesperson for Lyft said it holds all drivers “high standards and requires they maintain the insurance coverage required by Manitoba and the City of Winnipeg,” in an emailed statement.

“We will continue to work collaboratively with MPI and the City of Winnipeg to help ensure drivers meet all applicable insurance and regulatory requirements.”

Uber Canada also said rideshare trips must be properly insured in accordance with government regulations.

“Uber has worked closely with MPI and the City of Winnipeg to strengthen insurance compliance,” an emailed statement from an Uber Canada spokesperson reads.

“In light of Manitoba Public Insurance’s (MPI) recent review, we believe it’s time for Manitoba to adopt the model used across Canada, where rideshare companies like Uber purchase umbrella insurance coverage for trips on their platform, rather than requiring drivers to arrange their own rideshare coverage.”

While speaking at the conference, MPI’s president said that a program like the one Uber spoke of is in the works.

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