SO YOU HAD AN ACCIDENT?

by Alan Plafker, PRESIDENT & CEO Member Brokerage Service LLC

A Melrose Credit Union Service Organization



Paterson Picks PIANY Agent for New Livery Comp Board

April 10, 2009

New York Gov. David Paterson has selected the secretary of Professional Insurance Agents of New York (PIANY) to serve on the board of directors of a fund established by lawmakers to provide workers' compensation and no-fault auto insurance for New York City's unusual livery industry.

PIANY said Thursday that Alan Plafker, a licensed broker who provides insurance to the state's taxi, black-car limousine and car-service industries, will join the board created by the New York Legislature last July.

The livery industry consists of independent drivers who use their own cars to provide transportation around the New York City area based on referrals from a network of private dispatchers.

Lawmakers and regulators said last year that while the dispatch services might have been legally bound to pay for the injuries and, in some cases, fatalities involving the drivers, they often had no coverage. Livery drivers routinely serve areas considered too dangerous to be served by cab companies.

The legislation created a fund subsidized by annual payments made by the drivers. PIANY said in a news release that Plafker and other board members are responsible for managing the fund and establishing penalties for violators. He was nominated to the post by New York Senate Majority leader President Pro Tem Malcolm Smith.

"We congratulate Alan on his selection for this important position," PIANY President D. Scott Liebert said in a press release." His appointment will ensure that the voice of both independent agents and independent livery drivers throughout New York state are heard."

 

A simple auto accident can be very complicated, especially if it involves a Taxi, Black Car or other Livery vehicle. There are laws in New York State such as comparative negligence, no-fault (PIP), workers compensation and TLC rules that influence the liability and insurance coverage.There are many parties to an accident such as the owner of the vehicle, the owner of the medallion, the driver of the vehicle, the passengers in the vehicle, and the same description of parties in the other vehicle involved.

So believe me, it is no party with all these parties. There is insurance coverage that applies (or doesn't apply) differently to each party, and the insurance coverage has limits. Also, some coverage is primary and must be claimed before other insurance will pay benefits. Important to know is that any Workers Compensation and No-Fault claims must be reported promptly or coverage can be denied for late reporting.

First of all, review your limits BEFORE you have an accident. Many people just buy the minimum limits required by New York State or the local TLC. This may not be enough in the event of an accident. An insurance company not only provides payment of a claim up to the policy limits but also provides defense of a claim in addition to the limits. You can be held responsible for any liability above your limits and the other party can go after your assets such as your medallion, radio rights, bank accounts, or your home. An insurance company can pay the policy limit and walk away requiring you to hire a lawyer to defend you and protect your assets.

Property Damage (PD) coverage has a minimum required limit of $10,000. This protects you and will pay for damage you cause to another persons property. Usually, that refers to another vehicle you damage, but also applies to any property such as a building. I have seen many claims that involve a vehicle that somehow winds up crashing into a building causing major damage. Also, this limit is inadequate because there are so many cars that are worth over $10,000.

If the cost to repair exceeds $10,000, you can be responsible to pay out of your pocket. I use this example because the cost to increase your limits above $10,000 is very reasonable and is highly recommended.Another thing to remember is that property damage coverage only protects you for damage you may cause to other people's property, not your vehicle. You should consider covering your vehicle with Fire,Theft and Collision coverage in addition to liability.


Now, back to some of those laws that affect the claims:

Workers Compensation will cover the driver for his injuries unless the driver is the owner of the vehicle and is exempt. Another time WC may not apply is when the driver is using the vehicle but not working at the time. WC would not pay a claim if the driver is not working at the time of the accident. There is a NY State Workers Compensation Board that regulates and enforces the WC laws directing the insurance companies in respect to claims.

No-Fault (PIP) coverage will apply for injuries to the driver if WC is not covering him/her. No-Fault also covers any passenger's injuries. You can have an accident that is not your fault, and still have claims paid under WC or No-Fault.

Here is some important advice in the event of an auto accident:

  • Get the information on the other vehicle's ownership & driver,


  • Get names & addresses of all witnesses,


  • Take pictures at the scene — keep a camera available in your car at all times,


  • Have your damaged car seen AT YOUR SHOP by the Insurance Co.,


  • Get the police report and contact your broker promptly,


  • Submit WC or No-Fault claim forms as required by law,


  • Report the claim to your base promptly if you're a Black Car or Livery,


  • Report the claim to the owner or management Co. if you are a driver of a medallion vehicle,


  • Do not admit Liability or try to settle a claim without legal advice.


As you can see, it is uncommon to have a simple accident. All accidents should be discussed with your broker to protect you, and help to comply with all the laws and regulations that may apply in your case.


Your Professional Insurance Agent—
We want you to know about the insurance you’re buying.

Alan Plafker is President of Member Brokerage Service LLC, a Melrose Credit Union Service Organization. He is a licensed Insurance Broker and serves on the Board of Directors the PIANY (Professional Insurance Agents Association of NY) and on the Board of CIBGNY (Council of Insurance Brokers of Greater NY). His Agency insures thousands of polices for TLC Insurance as well as many policies for all types of insurance. You can reach him in his Briarwood, Queens office at (718) 523-1300 ext. 1082.

 

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