WASHINGTON—In advance of a Federal Trade Commission workshop that will explore issues related to emerging internet peer-to-peer platforms—often called the “sharing” economy—and the economic activity these platforms facilitate, CUNA has sent a letter saying that transportation network companies (TNCs), such as Uber, Lyft, and Sidecar, present particular interest to credit unions.
“Because TNC drivers are not employees and the vehicles they operate are not owned by the TNC, legitimate concerns exist with respect to whether or not TNC drivers are appropriately insured through all phases of operation,” CUNA said in its letter.
A number of state leagues have raised the same issue with their respective legislatures.
The CUNA letter explained that CUs’ interest in TNC operation relates to their role as lienholders on vehicles that could be used by TNC drivers. If not properly insured, credit unions are exposed to losses.
“Recently, Uber and major insurance companies, including Allstate, Farmers, State Farm, Nationwide and USAA announced model TNC insurance legislation; however, this model legislation does not require drivers to have comprehensive and collision insurance coverage for personal vehicles that have liens on them,” CUNA said.
CUNA said it supports regulations that would:
- Require drivers using personal vehicles with liens on them to provide proof to lienholders and TNCs that they have comprehensive and collision insurance that provides coverage during all periods;
- Require coverage of at least $50,000 per person for death/bodily injury, $100,000 per incident for death/bodily injury and $25,000 for property damage during Period 1;
- Require coverage of $1 million when the driver is engaged in a prearranged ride, Periods 2 and 3;
- Require a TNC’s insurance to cover claims if a driver’s insurance lapses or does not meet the required coverage;
- Require TNCs to disclose to drivers that the driver’s personal.