AGENCY TESTIMONY
Intro 1050: Reducing Personal Injury Protection (PIP) insurance requirements
0:22:36
ยท
91 sec
Commissioner Do addresses Intro 1050, which would prohibit TLC from requiring licensed vehicles to have Personal Injury Protection (PIP) coverage greater than state law, effectively reducing it from $200,000 to $50,000. He explains the TLC's position and concerns regarding the proposed change.
- Higher PIP limits were adopted in the late 1990s to address safety in the for-hire industry
- TLC believes higher coverage is appropriate for full-time for-hire vehicles used by professional drivers
- Concerns are raised that reduced coverage may not lead to lower premiums for drivers, while potentially reducing needed coverage for roadway users
David Do
0:22:36
Lastly, intro ten fifty would prohibit TLC from requiring licensed vehicles to have personal injury protection, also known as PIP or no fault.
0:22:45
Coverage in the amount of greater than state law effectively reducing PIP coverage from 200,000 to 50,000.
0:22:51
In the late nineteen nineties, TLC adopted insurance requirements that exceed the minimum levels set by the state as part of a broader effort to address safety in the for hire industry.
0:23:01
In our view, these higher no fault limits ensure all roadway users, drivers, passengers, pedestrians, cyclists are quickly and adequately compensated in the event of an injury causing crash, especially when the injuries are significant or involve claims from multiple people.
0:23:19
Additionally, we think the higher coverage is appropriate for TLC licensed vehicles, which are largely used as full time for hire vehicles by professional drivers as compared to other locations in New York and elsewhere in The US, where drivers are more likely to be part time.
0:23:35
While we understand the intent of the bill is to lower insurance premiums for drivers and we support this goal, It is not clear that driver premiums will actually go down as reduced coverage doesn't necessarily mean reduced premiums.
0:23:48
In other words, we're concerned that the savings resulting from this bill may be kept by insurance companies rather than pass on to drivers.
0:23:56
While needed, coverage for roadway users is reduced.
0:23:59
We welcome further discussion on this issue with the council and stakeholders to ensure that any changes benefit drivers and all New Yorkers.