The Senate & House have different ways in considering stronger Uber Car Insurance Requisites for the services on technology-based rideshare.
While limo and taxi services require more stringent regulations on increasing companies that operate transportation network, the Senate has enlarged the SB 1298 (insurance procedures) in taking the requirement for the 24-hour coverage on cars and vehicles with app-connected rideshare drivers.
This requirement will take effect once the driver has been employed and working in the company for at least 6 months. This proposal is not included in HB17 House companion bill which awaits a floor vote.
The lawmakers are working on imposing the current layer of insurance for the technology firms with the goal of closing a coverage breach, between a car driver who is informed to pick up a customer and the time for “on-call” where a customer gets inside the car.
According to Senator David Simmons, A Republican from Altamonte Springs who also sponsors the Senate bill, people in Florida are at risk of getting injured due to this gap and they don’t receive any coverage at all. For them, it is obligatory to take necessary actions.
His suggestion has a purpose of clearing up expected problems on liability, to give both parties the same opportunities and advantages. The intention is to have fair treatment between the traditional cab firms and the rideshare programs and to lower the chances of having good-for-nothing car drivers.
David Simmons also stated that those drivers have only the least “no-fault” car insurance coverage. The proposal will purposely discourage rideshare drivers from independent transporting passengers to their job with app-based services.
From the Senate Appropriations Committee there’s a 14-2 vote to back up the amended proposal of David Simmons.
Cesar Fernandez, Uber lobbyist, stated that the firm can unwillingly accept bigger requirement coverage for the drivers while the gap is going on, although the company knows that the drivers at that time aren’t driving commercially for their personal cars.
But, Fernandez also said that Uber opposed the 24-hour coverage for those drivers who have been employed in the company for 6 months or more.
He said that the proposal isn’t a deterrent as claimed by Simmons in stopping drivers from independently transporting passengers.
“There’s no way of deterring something by giving car insurance in exchange for it,” said Fernandez. It’s a deterrent that would penalize if that kind of activity is done.
Fernandez also said that Uber accepts car drivers to their program as long as drivers have insured their personal car.
It’s going to be parallel to a casino with insurance to pay for the gamers while people don’t really gamble inside a casino.
The two proposals from the House & Senate will need the network companies in giving $1 million dollar for the liability coverage on death, physical injury, including property damage during the time passengers are inside the cars.
And for the “on-call” time, what the Senate requires is for the company or driver to get coverage of $100,000.00 for the physical injury and death, and $50,000.00 minimum for the property damage.
The House has the proposal offer of $50,000.00 minimum for physical injury and $25,000.00 for the property damage.
Likewise, the Senate requires that coverage must come from the associate of Florida State Insurance Guarantee Association. On the other hand, the House proposal will allow coverage be given by the regulated surplus-lines insurers.
To learn more about Uber Car Insurance Requisites, please contact us at DMG Insurance and Financial Services, Inc. (http://www.dmginsurance.com) at 543 N state Road 7, STE 106, Royal Palm Beach EL, 33411, phone 561 422 7071, Fax 561 422 7072.