California governor approves bill with stricter liability insurance requirements

On September 17, 2014, California's Governor approved the "Assembly Bill No. 2293" bill that will become effective on July 1, 2015. The bill will amend "the Passenger Charter-party Carriers’ Act to enact specified requirements for liability insurance coverage for transportation network companies, as defined, and their participating drivers." The driver under the new law is defined as "any person who uses a vehicle in connection with a transportation network company’s online-enabled application or platform to connect with passengers." The stated minimum insurance requirement ranges from US$50,000 to $100,000 for death and injuries per individual or incident, and stipulates US$30,000 for property damage. As a breach of the bill would be classified as a criminal act, a corresponding "state-mandated local program" will be implemented.