The Illinois Senate this week passed legislation requiring app-based ridesharing companies’ primary insurance be in affect the entire time the app is turned on.
House Bill 4075 passed 46 to 8 and establishes regulations for transportation network companies that are similar to those that apply to other similar commercial driving activities.
In addition to requiring background checks on drivers, vehicle inspections, and chauffeur licenses for drivers who work more than 18 hours a week, the bill clarifies an important insurance coverage question by establishing that the TNC firms’ commercial insurance coverage is primary and that it is in effect the entire time a driver’s app is on and is available to accept a ride or has a passenger.
“This legislation is a positive step forward and sets a reasonable standard to ensure that the public is protected if there is an accident while allowing this innovative new market to continue to grow,” said Jeffrey Junkas, regional manager the Property Casualty Insurers Association of America, which has been speaking out for insurance regulations on TNCs.
Topics Legislation Politics Illinois Ridesharing
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