Uber 'reviewing' new Alberta rules before deciding to resume service

Uber will review whether to resume operations in Alberta in light of new provincial rules and a new insurance policy for ride-service drivers that take effect this week.

"We recognize the steps taken by the Alberta government and we will be reviewing the newly approved ride-sharing insurance policy and other announced rules," Uber spokesman Jean-Christophe de Le Rue said in an email. "We'll have more to share soon."

On Tuesday, Transportation Minister Brian Mason confirmed that an insurance policy created especially for ride services such as Uber will be available in Alberta starting July 1.

However, the minister is not backing down on the requirement for ride-service drivers to upgrade to a class 1, 2 or 4 licence, which requires a more comprehensive test than a class 5.

The cost of the test runs from $150 to $200. Drivers must pass a police records check, which is more thorough than a criminal records check because it flags charges and outstanding warrants.

Uber opposes rules that force its drivers to upgrade their licences.

Mason said the government turned down one Uber proposal: The company had asked that drivers be allowed to retain their class-5 licences, as long as limits were placed on the hours they can work over a three-month period.

"We want to make sure whenever a driver takes a passenger for hire that they have met the requirements for doing so," Mason said. "We didn't accept their suggestion."

The province will audit the ride-service companies to ensure their drivers have complied with the rules.

If not, companies, not the drivers, will face fines of $50,000 per offence per day.

TappCar already compliant

The insurance policies will have to be purchased by the ride service for use by their drivers.

The policy, developed by the province's superintendent of insurance with help of Intact Insurance, offers $1 million in statutory accident coverage for drivers when they log into their company's app.

The coverage increases to $2 million in third-party liability coverage and optional collision or comprehensive coverage when the fare is accepted and when the passenger is in the vehicle.

Uber ceased operating in Edmonton at the end of February after the city passed a bylaw that compelled drivers to have proper insurance. The company contends commercial insurance policies are too expensive for their drivers, so it had to wait until the province approved a policy specifically for ride-hailing companies.

TappCar launched in Edmonton the meantime. TappCar drivers have at least a class 4 licence and have the same commercial insurance policy used by taxi drivers.

A TappCar representative said after Mason's news conference that the new rules won't change their operations, since they are already in compliance.