Uber has long fought against state regulatory and legislative insurance requirements it considers onerous. This week, the ride-sharing company scored a major victory on this front after Kansas Governor Sam Brownback vetoed a bill that would have placed certain insurance requirements on Uber drivers.
The legislation would have required Uber drivers to undergo criminal background checks conducted by the Kansas Bureau of Investigation. Drivers would also have to prove they carry both comprehensive and collision coverage to avoid any insurance gaps – particularly the gap that occurs in the time between a driver turning on his or her mobile app and then heading to pick up a passenger.
The bill passed with large, bipartisan majorities in both the House and Senate, even as Uber launched an aggressive lobbying campaign against the bill and even threatened to leave Kansas if it was passed.
Brownback, however, sided with Uber on the grounds of promoting innovation in the state.
“Kansas should be known as a state that embraces economic growth and innovation,” the governor said in a statement. “The jobs created by this new industry can bring opportunity to many Kansas families. An open and free marketplace often results in higher quality products at a more affordable price.”
The veto goes against the grain of other states, like California, that have begun to adopt greater insurance regulations for ride-sharing companies.
Supporters of the bill expressed regret that the measure did not become law.
“The primary goal of government is to make sure that their citizens have a safe environment,” Senator Jeff Longbine told
The Kansas City Star. “And that’s all the bill did.”
For its part, Uber has continued to clash with state regulators over the insurance issue.
In March, the company made similar threats to leave New Jersey after legislation was introduced that would require Uber’s
commercial insurance policy to take effect as soon as drivers log into the mobile app and make themselves available to passengers.
Josh Mohrer, Uber’s general manager for the New York area, acknowledged that drivers’ personal auto insurers do sometimes deny claims for accidents that occur during the gap between the driver logging onto the app and when he or she accepts a ride request, but that personal policies have covered such incidents “more than half the time.”
The insurance industry has largely rejected these claims, and supports efforts such as those in Kansas and New Jersey.
Brownback has said he would be willing to reconsider the issue at a later date.
