Insurance Investor Warnings
Montréal - With the vacation period in full swing, many consumers may be tempted to offer or use a variety of services now available through electronic platforms. As far as the sharing economy is concerned, the AMF would like to remind you that it is important to make the customary verifications, including with your insurer, and make sure you fully understand the risks associated with using these platforms.
Renting your home or part of your home
Hoping to earn additional income by renting out a room or property through a Web-based platform? You should contact your insurer to verify the extent of your coverage in the event of a claim.
You could well be exposing yourself to losses if your insurer determines that it is a commercial activity that is excluded by your policy. Therefore, contact your insurer prior to offering your home for rent.
Offering your car for rent or for transporting passengers for a fee
Hoping to make some extra income by renting your vehicle or sharing rides with passengers in exchange for payment?
Paid transport is a regulated activity in Québec. Moreover, your automobile insurance policy contains exclusions that may apply in the event of an accident while carrying out this activity. You may not be compensated for damage to your vehicle.
These same exclusions may also prevent you from being compensated in the event of an accident while your vehicle is rented out to a third party.
It would be wise to exercise caution and contact your insurer before making your vehicle available for transporting passengers or for rent via an electronic platform.
Protecting your property through a Web-based community
Hoping to save money by turning to a community for property insurance, without going through an insurer?
Beware. Selling insurance products is a regulated activity. In Québec, companies must obtain a licence from the AMF to carry on their insurance activities.
Otherwise, you may incur losses:
- if the community refuses to pay a claim;
- if the community has insufficient financial resources;
- if the website or application closes down.
On June 13, 2016, the AMF announced the implementation of a working group whose primary mandate is to analyze technological innovations in the financial sector, including shared platforms and their impact on consumers.
In the meantime, consumers who have questions regarding a financial service offered in Québec can contact an AMF Information Centre agent.
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Sylvain Théberge: 514-940-2176
Québec City: 418-525-0337
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