Reached with the companies last month
TNCs, regulated by the California Public Utilities Commission, operate under a separate set of regulations from taxicabs. Significant differences include insurance requirements compared to the taxi industry.
Legislation signed by Gov. Jerry Brown Wednesday set new insurance standards for transportation networking companies like Uber and Lyft based on a compromise reached with the companies last month.
The issue drew attention in San Francisco earlier this year when Uber driver Syed Muzzafar, 57, struck and killed 6-year-old Sofia Liu the night of Dec. 31.
As originally introduced by Assemblywoman Susan Bonilla, D-Concord, the bill would have required the companies to provide $1 million any time a TNC driver’s app was activated, regardless of whether there was a passenger in the car.
Uber objected strenuously to the bill, and the final version was reached by compromise with Uber and Lyft and passed by the legislature last month.
Its requirements are similar to the policies Uber and Lyft had already voluntarily enacted — $50,000 coverage per injury in an accident with up to $100,000 covered, and $30,000 for property damage before the driver picks up a passenger. It will take effect next July.