Assemblywoman Susan Bonilla’s AB 2293, which clarifies insurance requirements for Transportation Network Companies (TNCs), was approved today by the Senate Appropriations Committee and moving to the Senate floor.
“I remain deeply invested in protecting all consumers, drivers and pedestrians that are affected by the hazardous insurance gaps that currently exist for TNCs,” said Assemblywoman Susan A. Bonilla (D-Concord). “I am in full support of advanced technology and business innovation, and believe consumer protection can also be achieved in their new business models.”
AB 2293 requires TNCs to disclose to their drivers that personal insurance policies may not cover them when they are driving for commercial purposes. It also closes the insurance gap, ensuring that there is insurance coverage from the moment the app is turned on until it is turned off. Furthermore, the measure clarifies that the TNC commercial insurance is the primary insurance coverage.
“I look forward to continuing to ensure that consumer protection and public safety are a state priority. While the pioneering services that TNCs provide have been proven convenient and popular amongst the general public, numerous cases have also shown the dangers that result from a lack of clarity in insurance coverage. AB 2293 resolves this issue and affords companies such as Uber and Lyft the ability to provide higher quality services to their consumers. My bill also protects drivers from the risk of losing their personal assets, such as their homes and life savings, because of inadequate insurance coverage.”