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Action Needed To Ensure Taxi Drivers Have Workers Compensation Coverage

Posted on Jan 12, 2011

In 2008, legislation was signed into law by Governor Paterson to provide workers compensation benefits for independent taxi drivers. Called the Independent Livery Driver Benefit Fund, this legislation allows taxi drivers who are seriously injured or victims of crime to be covered by workers compensation insurance. In order for drivers to have coverage, the independent livery base dispatching the drivers for service had to be a member of the Independent Livery Drivers Benefit Fund.

In recent news, the New York Workers Compensation Board has established a new requirement for independent livery bases. As stated on the New York State Workers Compensation Board website, "Effective January 1, 2010- in order to obtain, renew or retain a license, each base must provide their TLC with proof of a Workers' Compensation policy for its drivers or a certificate that they are a member of this Fund."

Independent livery bases who fail to apply for membership to the fund will be required to provide and carry full workers compensation coverage for all drivers. Failure to comply with this new rule will result in the individual livery base being shut down.

To help independent livery bases comply with this new rule, a special workshop is being held on January 14, 2010 between the hours of 3pm to 7pm. According to a recent press release, the workshop will be held at the Melrose Credit Union located at 139-30 Queens Boulevard in Briarwood, New York. Independent livery bases will have the opportunity to ask questions and join the fund to prevent a potential lose of business. The consequences of not complying with this new rule could have a devastating impact on thousands of people. Drivers would be without a base from which to work, making it difficult if not impossible for customers to obtain transportation. Subsequently, providing full workers compensation coverage to all livery drivers outside of the fund will place a financial strain on the independent livery base.

Workers compensation benefits provided to independent livery drivers include payment in the event of death or injury resulting from the performance of covered services. This includes coverage for injuries sustained as a result of a crime.