Underwriting Manager Lori Meyer and Litigation Attorney Carter Ross, both of Shelter Insurance Companies are pictured at the February 10th meeting of the Central Missouri Chapter of the CPCU Society. Lori Meyer, CPCU is the chapter president. Carter Ross, CPCU, JD spoke on the topic of Ridesharing and Transportation Network Companies (TNC).
Carter explained that this is a growing industry, peer-to-peer taxi cab services done through apps on smartphones, bypassing traditional taxi cabs. Uber, Lyft, Wings and Sidecar are 4 of the most commonly known TNC companies. This technology-based service is done solely through the app, using GPS coordinates and all services are charged to a credit card on file.
He also explained car-pooling (or ride sharing) and car sharing.
The biggest issues with TNCs for the insurance industry are coverage gaps and defining when the Private Passenger Auto (PPA) policy covers a loss and when the TNC covers a loss and determining priorities of coverage.
Carter stated that the insurance industry is trying to address these questions.
Coverage in different states will vary depending on the circumstances of a claim, legislative activity, court opinions, and policy forms. Basically, we’ll have to wait for real claims and real situations to determine how or if the PPA policy would apply. Laws vary by state and there is no court guidance yet. The industry needs to be pro-active in addressing these issues.