N.M. Requires Transportation Operators To Beef Up Coverage

June 14, 2007

Certain public transportation operators will soon be required by the New Mexico Public Regulation Commission to carry more liability insurance. Up to 3,000 so-called “incidental carriers” may be subject to the new requirement beginning June 15.

Incidental motor carriers, which have previously not been subject to the Commission’s regulatory authority, are those that transport 16 or more passengers but don’t directly charge customers for that service. Examples include hotels or other businesses that offer customers free shuttle service, or a rafting company that transports its clients via bus to a waterway.

The PRC Transportation Division announced it will require such carriers to maintain public liability insurance of $250,000.
Currently, the PRC requires motor carriers that charge customers directly for transportation services — taxicabs and charter buses, for example — to maintain certain levels of liability insurance.

The State Legislature this year made incidental carriers subject to the same kind of insurance requirements, which the PRC is charged with implementing and enforcing.

“It’s important for consumers that all public transportation providers maintain adequate liability insurance coverage,” said PRC Transportation Division Director Ron Martinez. “Many incidental carriers may already meet or exceed the new insurance requirements, but we want to make sure those that don’t understand they need to make changes to their policies.”

Incidental carriers will be required to provide documentation of insurance coverage to the PRC Transportation Division. For information, visit www.nmprc.state.nm.us/td.htm.

Source: PRC

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