CPUC to Regulate Transportation Network Companies

Publish Date:Sep 24, 2013
Summary:
The California Public Utilities Commission (CPUC) adopted a decision to regulate transportation network companies (TNC).

The California Public Utilities Commission (CPUC) adopted a decision to regulate transportation network companies (TNC). These ridesharing companies like Uber, Lyft and Sidecar use a smartphone app to connect drivers with people needing a ride.  These companies have come under fire from critics including the taxi industry, airports and transit districts who claimed the industry is without government regulation.

The new rules would, among other things, require the TNCs to maintain commercial liability insurance policies providing not less than $1,000,000 (one million dollars) per-incident coverage for incidents involving vehicles and drivers while they are providing TNC services. The insurance coverage shall be available to cover claims regardless of whether a TNC driver maintains insurance adequate to cover any portion of the claim. In addition, TNC drivers shall be required to provide proof of both their personal insurance and the commercial insurance in the case of an accident. The adopted regulations are here:

http://docs.cpuc.ca.gov/SearchRes.aspx?docformat=ALL&docid=77122741

 

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