Investing.com -- New York City has withdrawn a proposed rule change that would have mandated taxi and rideshare drivers to have coverage from a "solvent and responsible" insurance carrier. The decision was made after Uber Technologies Inc . (NYSE: UBER ) cautioned that the requirement could potentially leave thousands of drivers without insurance.
The Taxi and Limousine Commission (TLC), which oversees for-hire vehicles in the city, has now altered the requirements. The revised rule only demands that the insurance policies be "issued by companies authorized to do business" in New York state. This change eliminates the obligation for licensed vehicle owners to assess their carrier's financial status, as per the updated rule document available on the TLC's website.
The board of commissioners is scheduled to vote on the final rules on Wednesday. If the rules are approved, they are set to be implemented on Jan. 1, 2026.
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