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Ride-hailing legislation introduced; reported out of committee

New ride-hailing legislation (A-3695) was introduced in the state Assembly on May 19, 2016, and reported out of the Assembly Transportation and Independent Authorities Committee, with amendments, on the same day. The legislation is comprehensive in its treatment of the ride-hailing practice and covers background checks for Transportation Network Co. drivers and vehicle inspections to insurance requirements.

Under the provisions of the new bill, when a TNC driver is logged on to a TNC app and is available to receive a prearranged ride request—but is not providing a prearranged ride—coverage must be offered in the amount of $50,000 for death or bodily injury per person; $100,000 for death or bodily injury per incident; and $25,000 for property damage. In addition, personal injury protection benefits also must be provided in amounts that conform to current law and uninsured motorist/underinsured motorist coverage must be provided to the extent required under current law.

When a TNC driver is providing a prearranged ride the coverage, requirements increase to $1.5 million for death bodily injury and property damage. In addition, insurance for medical payments benefits in the amount of $10,000 must be provided, but this is only for the benefit of the TNC driver and finally UM/UIM coverage must be provided to the extent required under the law.

Under the bill, coverage can be provided by either the TNC driver’s policy or by the TNC itself. If the TNC driver’s policy does not cover ride hailing then the TNC is required to provide coverage beginning with the first dollar of the claim and they will have a duty to defend. Coverage under a TNC policy is not dependent upon the private policy first denying a claim. The bill will now go to the full Assembly for further consideration.

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