Jun 21, 2016

Ride-hailing legislation reported out Senate committee

Ride-hailing legislation, S-2179, was reported out of the Senate Budget and Appropriations Committee, with amendments, June 16. The legislation is comprehensive in its treatment of ride-hailing practices and covers everything from background checks for Transportation Network Co. drivers and vehicle inspections to insurance requirements.

Under the provisions of the 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 and conform to the current law. Additionally, uninsured/underinsured insurance 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. If the TNC’s driver policy does not cover ride hailing then the TNC is required to provide coverage beginning with the first dollar of the claim and it will have a duty to defend. Coverage under a TNC policy is not dependent upon the private policy first denying a claim.

The bill now will go to the full Senate for further consideration. Similar legislation currently is being considered by the Assembly.