A December 2025 to February 2026 investigation by Manitoba Public Insurance (MPI) revealed 108 out of 408 randomly selected ride-hailing vehicles in Winnipeg were operating with personal insurance instead of required VFH coverage, according to CBC. Drivers allegedly switched to cheaper personal policies after registering with Uber and Lyft, a practice MPI called fraud, plain and simple.
Grant Heather, manager of vehicles for hire with the Winnipeg Parking Authority, stated 2,500 vehicles were temporarily removed from roads until they provided updated insurance information, with 40% returning and 60% presumed inactive.
Insurance Fraud Discovery and Crackdown
During the period from February to August, roughly 3,000 ride-hailing vehicles were found lacking proper insurance coverage and were barred from accepting passengers in Winnipeg, the corporation’s news release said. The vehicles weren’t allowed back on the road until after they had the proper insurance. MPI’s review also found 1,200 policies with insufficient coverage, resulting in an estimated $260,000 in underpaid premiums during the three-month period, according to the release.
Financial and Legal Implications
Drivers without proper coverage face a $1,000 bylaw fine, and MPI is pursuing legal avenues to recover unpaid premiums. Satvir Jatana, MPI’s president and CEO, emphasized that VFH insurance—costing about $3,000 annually compared to $1,500 for personal policies—accounts for the heightened risk of ride-hailing, as reported by Global News.
It creates an unfair advantage for those who choose not to follow the rules and shift those costs onto other honest drivers and Manitobans,
Jatana said, according to CBC. The Crown corporation is collaborating with Winnipeg to enhance data sharing and verification processes, including monthly insurance audits for registered vehicles.
Platforms Strengthen Insurance Compliance
Ride-hailing platforms like Uber and Lyft have reiterated their requirement for drivers to maintain proper insurance, as noted by Global News. Uber Canada stated it is working with MPI and the city to strengthen insurance compliance,
while Lyft emphasized adherence to Manitoba and Winnipeg regulations. Jatana called for a provincial “blanket policy” to prevent such fraud, citing Manitoba’s unique model where drivers self-insure, unlike other Canadian provinces where companies cover risks.
Heather acknowledged the financial pressures on drivers, citing rising fuel and vehicle costs, but stressed the need for compliance. MPI’s legal team is evaluating recovery options, while fines of $1,000 remain in effect for noncompliant vehicles.
Uber driver Gurmail Bassan said drivers shouldn’t misrepresent how they’re using their vehicles to lower insurance costs. Manitoba stands out as the only province where ride-hailing drivers are responsible for their own insurance, unlike other Canadian regions where the companies they work for usually manage coverage, according to CBC.
Heather said there is a monthly average of roughly 5,000 registered drivers in the city. MPI’s investigation sparked by enforcement officers who discovered improper coverage during inspections, according to the City of Winnipeg. All registered ride-sharing workers with companies such as Uber or Lyft are required to have Vehicle-for-Hire (VFH) insurance, according to MPI. The Crown corporation projects a loss of $260,000 in unpaid premiums across 1,200 policies with insufficient coverage within the three-month span — December 2025 to February 2026, according to the release.
Ultimately, this joint approach helps protect passengers, drivers and the public while supporting a fair and accountable vehicle for hire industry,
Heather said. MPI’s president said a program like the one Uber spoke of is in the works, according to Global News. The city’s department regulates rideshare drivers and collaborates with MPI, as stated by Heather. Jatana echoed Heather’s comments, noting that all rideshare companies have been collaborative with VFH and agreed to sharing data both with the city and with MPI to ensure appropriate coverage is in use when operating rideshare services.