Manitoba Rideshare Insurance Crackdown Cuts Underinsurance Fraud 80%

Manitoba’s ride-hailing insurance crackdown has exposed a pattern that MPI says left hundreds of Winnipeg vehicles operating without the coverage required to carry passengers.

A random sample of 408 Winnipeg ride-hailing vehicles found 108 were using all-purpose or pleasure-use policies rather than vehicle-for-hire coverage, MPI said. The drivers had initially supplied proof of the required coverage, then changed their policies.

A costly coverage gap

MPI estimates it lost $260,000 in underpaid premiums across about 1,200 policies with insufficient coverage between December 2025 and February 2026.

The insurer has also identified 36 collision claims, totalling about $189,000, involving ride-hailing activity without appropriate insurance coverage.

“When a driver chooses to change the coverage from a ride share to a personal use, and continues to operate as a ride share, that is fraud, plain and simple,” MPI president and CEO Satvir Jatana said.

MPI says the issue puts compliant drivers at a disadvantage. Jatana said the public insurer is accountable to Manitobans and must pursue options to keep premiums “low, affordable, stable.”

Thousands stopped from pickups

The City of Winnipeg and MPI have moved from identifying the issue to actively removing non-compliant vehicles from ride-hailing service.

Between February and August, about 3,000 ride-hailing vehicles were identified as lacking the required coverage. They were prevented from picking up passengers in Winnipeg until they could show they had proper policies.

MPI says underinsurance and fraud among rideshare drivers has fallen by about 80 per cent since February, following targeted work with the city.

That enforcement includes real financial consequences for drivers found carrying passengers without the right policy. Winnipeg’s vehicle-for-hire bylaw includes penalties for operating without required insurance, including fines of $1,000.

“There is a penalty notice, or fine under the vehicle-for-hire bylaw for not having the proper insurance,” Grant Heather, the City of Winnipeg’s manager of vehicles for hire, said.

Data sharing drives enforcement

MPI and the city are relying on monthly data analysis, increased monitoring, targeted enforcement and data sharing to verify that ride-hailing vehicles remain properly insured.

The aim is not simply to find policy problems after a collision or complaint, but to prevent underinsured vehicles from operating in the first place. MPI says it is considering further steps within the available legislative framework, while city and insurer officials work to strengthen verification.

“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,” Jatana said.

Manitoba’s different insurance model

MPI says Manitoba stands apart from other jurisdictions because individual drivers purchase their own ride-hailing insurance separately from the companies whose platforms they use. The insurer believes that structure is contributing to the compliance problem.

Jatana described it as a gap that needs to be addressed, saying Manitoba’s insurance arrangement may be creating an incentive for drivers to switch from vehicle-for-hire coverage after being cleared to work.

Rideshare companies have pointed toward a different model. According to CityNews, Uber Canada said Manitoba should adopt the approach of having rideshare companies buy umbrella insurance for trips made through their platforms, rather than requiring drivers to arrange their own coverage. Lyft told CityNews it would continue working with MPI and the City of Winnipeg to help ensure drivers meet insurance and regulatory requirements.

For now, MPI and the city’s message is direct: proof of coverage at the start is not enough. Drivers must maintain the required vehicle-for-hire policy while carrying passengers.

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