UPDATE 1-Aviva Canada says ride-sharing insurance coming in February

(Adds source on product pricing, government and regulator
comment)
By Alastair Sharp
TORONTO, Jan 6 (Reuters) - Aviva Canada aims to offer
ride-sharing insurance to Ontario drivers who use their own
vehicles to carry paying passengers starting next month, a
service that could solve a major headache for ride-hailing
company Uber Technologies Inc UBER.UL .
The Canadian subsidiary of Aviva plc AV.L said the
coverage is the first time it will offer ride-sharing insurance
anywhere in the world.
Insurance was a major bone of contention in a raucous debate
at Toronto city hall in late September, when the council voted
to write new transportation rules that would apply to Uber and
its ilk and asked the Silicon Valley-based company to stop
operating while they did so.
The policy extension will be available to existing Aviva
personal auto policyholders for drivers that spend up to 20
hours a week looking for or driving paying passengers.
A source with knowledge of the proposed product said a
typical driver with Uber or other similar services would likely
pay C$150 a month, or between 10 and 15 percent of the average
income earned by such drivers.
Commercial coverage for taxi drivers, who have vigorously
opposed Uber's business model, typically costs between C$4,000
and C$12,000 a year, depending on driving history and whether
the cab has secondary drivers or is operated in a fleet.
Many have complained that the UberX service undercuts taxis
on price by avoiding costly licensing and insurance.
The Financial Services Commission of Ontario (FSCO),
responsible for approving all insurance products sold in the
province, said it has had preliminary discussions with Aviva and
others about ride-sharing insurance but did not confirm receipt
of Aviva's proposal.
The provincial finance ministry also suggested the filing
was not yet in the hands of the arms-length agency.
"We are confident that once this filing takes place, FSCO
will review Aviva's new product in a timely fashion to ensure
that drivers and passengers are protected," Ontario's Finance
Ministry spokeswoman Kelsey Ingram wrote in an email.
Aviva said it will work with regulators across the country
to make the product more widely available in coming months.
The move by Aviva preempts a similar product planned by
rival Intact Financial Corp's IFC.TO insurance arm, which said
in September it was working with Uber and regulators on tailored
insurance products for its drivers.
"We are encouraged to see a growing number of Canada's
insurers show interest in innovation in the transportation
space," Uber Canada spokeswoman Susie Heath said.