UBER distributes proposed ‘TNC’ insurance
Published: March 30th, 2015
Uber is sharing an announcement made by some of the nation’s leading insurance companies, a major insurance industry association, and Uber.
Details are below in a letter shared with U.S. policymakers. Uber encourages insurance companies, industry associations, and Transportation Network Companies (TNCs) to support this compromise. Everyone benefits from appropriate insurance standards and safe transportation options.
The letter to policymakers:
“We’re proud to share a TNC Insurance Compromise Model Bill that has been developed by some of the leading auto insurance companies and TNCs and helps set consistent and modern insurance regulation for TNC services. Transportation network services have proven popular with consumers, and the traveling public will benefit from the addition of innovative, affordable and safe transportation options. The undersigned auto insurance carriers, Transportation Network Companies, and trade associations stand together in support of this insurance legislation, and encourage you to utilize this language to address TNC insurance issues in your state.”
Key elements of the Model Bill include:
* An insurance mandate of primary insurance coverage during Period 1 (logged in and available) with minimum liability limits of $50/$100/$25K plus any other state compulsory coverage. Coverage is to be maintained by the TNC, TNC Driver, or a combination of the two.
* An insurance mandate of primary insurance coverage during Periods 2 and 3 (en route to pick up and carrying passengers) with minimum liability limits of $1,000,000 plus any other compulsory coverage mandated of limos to be satisfied by the TNC, TNC Driver, or a combination of the two.
* Proof of TNC insurance to be carried by TNC Drivers. Mandatory claim investigation cooperation between auto insurers and TNCs. And,
* Express authorization of surplus lines insurance. Standardized definitions of TNC and TNC Driver. Disclosure language from TNCs to TNC drivers.
Support for insurers to contractually exclude coverage related to TNC activities, if desired. Support for insurers to create innovative new products for TNC Drivers.”
The undersigned companies and associations agree that the TNC Insurance Compromise Model Bill strikes the right balance between encouraging innovative transportation options and creating a strong regulatory framework that protects consumers, respects contracts and ensures proper auto insurance coverage:
Allstate, American Insurance Association, Farmers Insurance, LYFT, National Association of Mutual Insurance Companies, Property Casualty Insurers Association of America, State Farm, Uber Technologies, USAA
NOTE: This information came from Justin Kintz, who posted it for for Uber on March 24. Patrick B. McGuigan edited this report, among the most interesting unsolicted communications over the past week. More information? Visit http://blog.uber.com/insurancealigned