WASHINGTON, D.C., March 21, 2014 - Steven Suchil, Western region assistant vice president for the American Insurance Association (AIA), issued the following statement today before an informational hearing of the California Department of Insurance (CDI) entitled "Insurance and Transportation Network Companies: Solving the insurance challenges so passengers, drivers, pedestrians and property owners are adequately protected." AIA will advocate that the safety of consumers and protection against unforeseen loss should be the primary concern of the Department for the hearing on Transportation Network Companies (TNCs) and insurance.
Private passenger automobile insurance does not cover services being provided on a commercial basis. The public will be at risk if TNCs do ensure that the proper coverage is in place in the event of an accident. It is essential that TNCs provide protection for all commercial transport activities.
Mr. Suchil`s statement follows:
"The protection of consumers should be of paramount consideration as the Department addresses the emergent technology and means of public transportation of ride-sharing and TNCs. It is essential that passengers and drivers be appropriately protected against the risk of unforeseen losses and injuries. Insurance coverage requirements for these emerging transport systems must be consistent with commercial enterprises that provide transport.
"Personal auto policyholders should not subsidize the commercial activities of businesses, and their drivers, who choose to participate in the new and creative enterprises that capitalize on technology and the willingness of passengers to use new methods of urban transport. We urge the Department not to shift commercial activities to personal auto policies, rewrite statutes in an attempt to manipulate policy language to include commercial activities, or interfere with carriers` ability to underwrite policies."
This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: American Insurance Association via GlobeNewswire