Apr 28, 2017
Ride-hailing law goes into effect May 1
Gov. Chris Christie signed the Transportation Network Company Safety and Regulatory Act into law on Feb. 10, 2017. This law will go into effect on Monday, May 1, 2017. The legislation is comprehensive in its treatment of the practice of ride hailing, covering everything from background checks for transportation network companies’ drivers and vehicle inspections to insurance requirements.
Under the provisions of the law, 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 must be provided in amounts that conform to current law and uninsured/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. 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. In addition, UM/UIM coverage must be provided in the sum of $1.5 million.
The law prohibits a TNC or TNC driver from asserting the "verbal threshold" in any action arising from a prearranged ride. The verbal threshold limits recovery for non-economic damages, unless the person has sustained at least one of the types of injury recognized by statute.
Under the law, coverage can be provided by either the TNC driver’s policy or 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 it will have a duty to defend. Coverage under a TNC policy is not dependent upon the private policy first denying a claim.
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