Bonilla Bill Clarifying Insurance Coverage for Transportation Network Companies Approved by Assembly

May 28, 2014 19:00 pm · 10 comments

A bill, authored by Assemblywoman Susan Bonilla, which clarifies insurance coverage plans for transportation network companies (TNC) and requires important disclosures to TNC drivers that ensure all parties are aware of the insurance policy coverage in place, was approved by the Assembly this week.

“While I am in full support of new innovative business models, we must ensure that drivers and consumers are protected,” said Assemblywoman Susan A. Bonilla (D-Concord). “As transportation network companies (TNC) have grown, gaps in insurance coverage have been identified. This bill addresses the concern and clearly defines when commercial activity begins and ends, and who is responsible for coverage at all times.”

AB 2293 will do four things:

1. Require TNCs to disclose to drivers upfront that their personal insurance may not apply when engaging in commercial TNC activities.
2. Define in statute that TNC activities begin once the “app” is turned on and the TNC services end when the “app” is turned off.
3. AB 2293 clarifies that the TNC business company insurance is the primary insurance coverage.
4. Require TNCs’ liability insurance to defend their drivers when the driver has a claim or accident.

“Ultimately, this measure achieves a balance between important consumer protections and maintaining an environment where transportation business innovation can thrive.”

AB 2293 will be heard next in Senate policy committee.

Anon May 28, 2014 at 7:37 PM

Again BoneHead wasting tax payers time and money, you go girl! Really, please leave.

. May 28, 2014 at 8:02 PM

And who benefits most from the demise of ride share.

context please May 28, 2014 at 8:58 PM

Pizza drivers? Contract delivery drivers? Does anybody know in everyday terms what this bill purports to address?

Dr. Doc, PHD May 28, 2014 at 9:07 PM

There’s no time like being late with a good idea. Susan, please do the citizenry and take your FAA-approach to rules and regulations and go to the private sector where your ilk will be eaten alive.

BagsFlyFree May 29, 2014 at 9:25 AM

Why go through all this hoopla when the state could have forced the disrupters (Lyft, Uber) to establish adequate means to insure their company drivers? Skirting around the rules making these people contractors and adjusting personal policies is typical SF techie scam business practice. All Bonilla’s bills should be sent to the doorstep of Lyft and Uber for making the state run in circles.

BFF Out!

funny man May 29, 2014 at 11:40 AM

this bill is totally unclear. so did the transport unions buy her off or the insurance lobbyists buy her off… so confused

Elwood May 29, 2014 at 2:37 PM

I was hoping Fatty Bonilla would explain to us what exactly it is that her bill is supposed to improve.

Suzies May 29, 2014 at 3:04 PM

This insurance for network companies is kind of sketchy. From the way this bill looks it is an open invite to future litigation. I would rather the senate look at this bill and give us more details. I certainly don’t want to pay extra taxes.

BagsFlyFree May 29, 2014 at 4:17 PM

@ Elwood, this bill is clearing up the vauge space where insurance companies are on the hook for TNC (Lyft, Uber, etc) activities. Do they provide coverage when the driver is navigating to a client, during the drive, etc? Example – The driver should be on a “dispatch mode” the second they are moving to pick someone up. If someone were to get killed on that route, the TNC insurance should pay for the claim, as the driver would not have been on that route otherwise. TNC’s want to fight and say no, only when they pick someone up and on a fare are they technically “covered” by the TNC commercial policy.

The state should have fined these bozos out of business before they had a chance to influence policy (like this!!!).

...... May 29, 2014 at 6:50 PM

If you wanted the bill to mean anything, you’d have to get someone with more than 2 brain cells to write it.

“Fix” a “problem” by passing another law……

Damn idiots.

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