Ohio’s Transportation Network Company (TNC) bill, Sub. HB 237, is headed to Gov. John Kasich for his signature, according to the Ohio Insurance Institute.
The insurance industry trade group sent a letter to the governor in support of the bill and urging him to sign it into law.
The OII said statewide insurance-related coverage requirements are the best approach to protecting the safety of Ohio TNC drivers, passengers and pedestrians for a number of reasons, including:
- Uniform coverage with primary coverage through TNC eliminates guesswork out of potential liability issues
- It allows drivers to work seamlessly throughout the state
- It provides consistent levels of protection to passengers and pedestrians
The effective date of Ohio’s TNC law is expected in March 2016, 90 days after the Governor’s signature.
Insurance Coverage Requirements
HB 237 establishes the following auto liability insurance coverage requirements for TNC drivers:
When logged on to the TNC’s app-based system enabling the driver to accept passenger requests but before engaging in the actual service (referred to as ‘Period 1’):
- $50,000 of coverage for bodily injury liability per person
- $100,000 of coverage per accident for bodily injury liability
- $25,000 for property damage
Upon passenger pick up (engagement), insurance coverage is set to increase to at least $1 million in liability and property damage (‘Period 2’).
Other insurance-related requirements:
- Permits personal auto insurers to offer TNC coverage for drivers through an endorsement or a separate policy for Periods 1 and/or 2.
- Requires TNC drivers to carry proof of insurance coverage (either an ID card or electronic insurance ID card that verifies meeting financial responsibility insurance requirements) and that after an accident, drivers are to disclose whether they were logged into the TNC system at the time of the crash.
- TNCs must disclose to their drivers that their current personal auto policy may not provide sufficient coverage for their TNC-related driving activities.
- Further clarifies that auto insurers may exclude personal auto policy coverage for TNC-related driving activities including legal defense.
- For the primary TNC coverage to apply, it does not require that a personal auto policy deny coverage for the claim.
- Requires that both TNCs and insurers mutually cooperate in the exchange of specified, relevant information during claims coverage investigations.
- Allows lenders to require TNC drivers to have comprehensive and collision coverage in certain instances.
- Specifies that the required automobile liability insurance policy be obtained through an insurer that has achieved a rating by an independent rating agency and is either licensed to do business in Ohio or, if not licensed in Ohio, that it meets specified criteria.
Other provisions:
- Requires TNCs to obtain an annual $5,000 permit from the Public Utilities Commission of Ohio.
- Requires identifiable TNC information in either of the following forms: 1) A TNC driver photograph and the license plate number of the vehicle; or 2) Prominent display of the TNC’s name on the vehicle providing the livery service
- Allows a driver to accept cash for services if TNC authorized. If permitted, the driver must notify the TNC of the payment amount and the passenger confirms the payment.
- Allows publicly owned airports to establish TNC regulations and fees related to passenger transportto and from the airport.
- Requires TNC background checks on driver applicants, including: 1) Cross-checking through both a criminal records and a national sex offender database and 2) Reviewing the applicant’s driving history report
- Requires that a TNC maintain records on their drivers for at least 2 years after they are no longer employed.
- Permits a driver to bring action and recovery under Ohio’s Whistleblower Law if a TNC discontinues the driver’s access to the TNC’s digital network because the driver made a report under that law.
- Allows taxicab companies to also operate as an authorized transportation network company and be regulated as a TNC when providing services under the TNC model.
Source: OII
Topics Auto Personal Auto Ohio
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