💺☂️ Hereford: TLC Should Clarify Seating Capacity Language
Executive at Hereford, a leading commercial liability insurance provider for the NYC TLC industry, believes TLC needs to clarify wording related to seating capacity & insurance requirements
According to New York State DMV the phrase “Seating Capacity” INCLUDES driver, while “Passenger Capacity” EXCLUDES drivers
DMV registration document, which insurance companies must use, INCLUDES driver in seating capacity
NYC TLC needs to clarify proposed insurance language to distinguish between passenger capacity INCLUDING driver & EXCLUDING driver, according to Hereford Insurance executive
In yesterday’s article, we had questions and concerns related to proposed TLC changes to seating capacity language and insurance requirements. We were worried language that stated vehicles with seating capacity of 8 passengers or more / less than 8 passengers could subject many TLC-plated vehicles to prohibitively expensive insurance premiums, as a $1.5 million insurance liability requirement would kick in.
Many popular NYC for-hire vehicle models like the Toyota Sienna, Chevy Suburban, GMC Yukon, Cadillac Escalade and Lincoln Navigator can have a New York State DMV listed 8 passenger “Seating Capacity”, as defined by the DMV.
The TLC stated these amendments were a reflection of “state legislative changes”.
Hereford Insight
We reached out to several insurance experts and were fortunate enough to receive very insightful and specific written correspondence from Keith Greenbaum, a senior executive at Hereford Insurance Company (HIC). Hereford is a leading provider of commercial liability insurance for the NYC TLC industry.
Below is a selection of his written comments, which he has kindly given us permission to share with our readers. Not only does Keith helpfully draft proposed amendments to TLC language, but also provides additional insight that only a subject matter expert can.
The DMV and NYS legislature has created some confusion in the definitions of “seating capacity”. In some instances the definition includes the driver’s seat, and in other instances, seating capacity is defined as the “passenger seating capacity” (excluding the driver’s seat).
Mainly, NYS VTL § 370.1 describes the minimum liability limits for vehicles transporting passengers for hire. The $1.5 million combined single limits pertains to vehicles that have eight (8) passengers and a total seating capacity (with the driver) of nine (9).
(c) (1)… “for Vehicles with Seating Capacity of Less than Eight Passengers (not including the driver’s seat)” OR “for Vehicles with Seating Capacity of Less than Nine (including the driver’s seat)
(c) (2)… Coverage for Vehicles with Seating Capacity of Eight to Fifteen Passengers (not including the driver’s seat)OR “for Vehicles with Seating Capacity of Nine to Fifteen (including the driver’s seat)
(c) (3)… Special Coverage for Luxury Limousines with Seating Capacity of Less than Eight Passengers (not including the driver’s seat)OR “for Vehicles with Seating Capacity of Less than Nine (including the driver’s seat)
What creates additional confusion is the fact that the NYS Insurance ID card and DMV Registration require the listed “Seats” to INCLUDE the driver.
Therefore, the seating capacity on the Insurance Card and Registration can be 8, and they fall into the regulation (c) (1), “for Vehicles with Seating Capacity of Less than Eight Passengers (not including the driver’s seat)”
