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American Insurance Association to Express Concerns about DC Transportation Network Services Innovation Act of 2014

WASHINGTON, D.C., May 12, 2014 - Rachel Jensen, associate counsel for the American Insurance Association (AIA), issued the following statement today after a hearing of the Washington, D.C. Committee on Transportation and the Environment entitled, "Bill 20-753, the Transportation Network Services Innovation Act of 2014."  AIA will express concerns regarding how the bill fails to account for the differences between personal and commercial auto insurance policies. 

The Transportation Network Services Innovation Act of 2014 would establish that the vehicle operator`s personal auto insurance policy is primarily responsible for any accidents and that the Transportation Network Application Company (TNAC`s) commercial auto liability insurance would be secondarily responsible.  However, personal auto insurance policies only cover personal activities and not those done on a commercial basis.   The Act would therefore create uncertainty of coverage should an accident occur.  AIA believes that the best way to address the insurance gap would be to regulate TNACs so they obtain commercial auto coverage.

Ms. Jensen`s statement follows:

"Personal auto insurance policies were never created with the intention of covering commercial acts.  The moment someone contracts to be an operator for a TNAC they have engaged their vehicle for commercial use.  The gap in insurance coverage created by The Transportation Network Services Innovation Act of 2014 could put all parties at risk.

"To protect consumers, vehicle operators, pedestrians and the driving public at large, reasonable regulation of Transportation Network Application Companies is required.  AIA believes that TNACs and their drivers should obtain commercial automobile coverage, like other livery and taxi services, to ensure that consumers are protected against unforeseen losses and injuries."

Media Contact:

Benjamin Tomchik
(202) 828-7129

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Source: American Insurance Association via GlobeNewswire