New York — With cheers and applause, thousands of taxi drivers and app-based vehicle drivers celebrated as a victory the approval of a law that limits the costs of liability insurance required by the Taxi and Limousine Commission (TLC).
With 50 votes in favor, the
New York City Council approved the legislation that prohibits TLC from imposing personal injury insurance coverage requirements exceeding 200% of the state minimum, establishing a basic limit of $100,000 in personal injury protection.
The measure, driven by councilwoman Carmen de la Rosa and supported by the coalition Citizens for Affordable Fares (CAIR) —which includes the support of platforms like Uber— will benefit more than 74,000 drivers who operate yellow cabs, livery cars, and vehicles affiliated with transportation apps.
"This legislation marks a turning point for an industry that has been on the brink of collapse," said José Altamirano, president of the Livery Bases Owners Association, after warning that for many years they have had to operate under an insurance system that is "unaffordable, unstable and irresponsible."
In addition to contributing to financial pressure on drivers, the new regulations also seek to reduce fraud in insurance claims, a recurring problem that has contributed to the increase in premiums in the sector.
"With the approval of this bill, the City Council has taken a significant step towards equity and financial aid. It opens the doors to greater competition in the market, more options for drivers and, ultimately, to a safer and more sustainable future for the entire on-demand transportation sector," said the leader of the public service vehicle drivers.
Community organizations, unions, and public transportation leaders have praised the work of Councilwoman De la Rosa, whom many consider a key voice in the legislative process. The councilwoman described the approval as "a triumph for the essential workers who move this city, and who have been ignored for too long."
The law will come into effect in the coming months, and an immediate relief in operating costs is already anticipated for thousands of families who depend on on-demand transportation as their main source of income.
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