Key Takeaway
NYC taxi and Uber drivers now require $200,000 no-fault coverage per person for basic economic losses, up from $50,000, impacting medallion owners and ride-share operators.
Murzik Taxi, Inc. v Lutheran Med. Ctr., 2021 NY Slip Op 02302 (2d Dept. 2011)
This case is is a an interesting loss for the Medallions and the black cars registered as Ubers. In avoiding a $58,000 hospital bill, it looks like the rules for this segment of the no-fault motoring population have changed.
“In the alternative, the plaintiff asserts that, as a self-insurer, its bond or policy was limited to $50,000 (see 11 NYCRR 65-2.2, ). Contrary to the plaintiff’s contention, taxicab owners, such as the plaintiff, are required to maintain liability coverage through an insurance policy or bond in an amount not less than $200,000 per person for basic economic losses (see Rules of City of NY Taxi and Limousine Commn § 58-13; see also Mount Sinai Hosp. v Dust Tr., Inc., 104 AD3d 823, 823-824). Further, the plaintiff failed to submit the insurance policy or bond, or any other documentary evidence for that matter, to establish that the insurance coverage was exhausted.”
Look at the underlined portion and tell me what that means. For one, I can tell you American Transit’s verification protocols on larger level claims are probably improper and will create another bad faith and GBL 349 argument. But think about what this could mean for loss transfer… wow..
Related Articles
- Understanding collateral estoppel in New York no-fault insurance coverage disputes
- When appellate courts grant summary judgment because loss was not an insured event
- How absence of business record entries can negate motor vehicle accident claims
- Insurance material misrepresentations and the preponderance standard
- New York No-Fault Insurance Law
