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Q&A
Insurance and liability coverage requirements for TLC vehicles
4:32:36
ยท
176 sec
Council Member Brooks-Powers inquires about the city's higher PIP insurance coverage requirements for TLC vehicles compared to state requirements. Commissioner Do explains the rationale behind the current coverage levels and the differences between liability and no-fault coverage.
- City requires $200,000 of PIP insurance coverage for TLC vehicles, four times the state requirement of $50,000
- Current TLC requirements: $100,000 per person, $200,000 in APIP, and $300,000 of coverage per incident
- Higher coverage requirements were set in 1998 due to high crash rates
- Recent accidents highlight the ongoing need for adequate coverage
- No-fault coverage provides quicker payouts (within 30 days) compared to liability coverage, which may involve lengthy litigation
Selvena N. Brooks-Powers
4:32:36
Thank you.
4:32:37
I'm gonna move over now to insurance and liability coverage.
4:32:42
Personal injury protection also known as PIP insurance, also referred to as no fault insurance, is designed to cover medical expenses and lost wages for drivers and passengers injured in traffic collisions regardless of fault.
4:33:00
City Council intro ten fifty was recently heard at a TLC oversight hearing.
4:33:06
This bill would prohibit TLC from requiring the vehicles it licenses to have no fault liability coverage in an amount greater than the amount required by state law.
4:33:20
The city currently requires TLC vehicles to purchase $200,000 of PIP insurance coverage four times greater than the $50,000 amount required by the state.
4:33:33
Why has the city set the PIP insurance coverage requirements with taxis and for hire vehicles higher than the state requirement?
David Do
4:33:41
I want to preface that I'm not a insurance expert, But what I I guess I say to that is that our requirements are $100,000 per person, $200,000 in APIP, and $300,000 of coverage per incident.
4:34:02
And during 1998, when there were a lot of crashes, the TLC at that time made the decision for additional coverage.
4:34:12
Today, we see additional crashes just more recently on Christmas Day, at Herald Square in Manhattan where six people were injured.
4:34:22
Or in your borough of Queens Council Member, where there was a crash, at 2AM on the eve of New Year's where there were one pedestrian that that was killed and two others injured.
4:34:35
And so additional PIP provides that benefit.
4:34:39
But again, you know, we are not opposed to lowering some of the minimums.
4:34:44
And in fact, we wanna work with you to overall look at how we can provide safety, while making sure that the coverage is adequate.
4:34:52
And so this is an open question, but why liability coverage versus, maybe this is your next question, versus why no fault?
4:35:01
No fault is a lot different because it provides coverage almost immediately.
4:35:08
By law, it provides coverage within thirty days.
4:35:11
Right?
4:35:11
Whereas the liability portion of the insurance may be subject to litigation.
4:35:18
Who is at fault?
4:35:19
Are there other people that are at fault as part of it?
4:35:22
And so then it takes a long time, some many years to go through the litigation process where no fault you got to respond to that claim within thirty days no matter who is at fault.