New Jersey Court Holds Ride-Share Carriers Liable for Pedestrian Impact

New Jersey’s Appellate Division recently rendered an opinion in Lamar Boone v. Unsatisfied Claim and Judgment Fund, et al., ultimately holding that an insurer is obligated to include uninsured pedestrian PIP coverage benefits in all Transportation Network Company (TNC) liability insurance policies issued in the state to a TNC, and covering a personal vehicle pursuant to N.J.S.A. 17:28-1.3.  In Boone, the Plaintiff was an uninsured pedestrian allegedly struck by the vehicle operated by a TNC driver during a ride-share arrangement.  The Defendant argued that the TNC statute did not require PIP coverage benefits be provided for uninsured pedestrians, however the trial Court, affirmed by the Appellate Division, rejected this argument, finding N.J.S.A. 17:28-1.3 required the carrier to provide such coverage.  That Statute states:

“Every liability policy issued in this State on a motor vehicle, exclusive of an automobile…insuring against loss resulting from liability imposed by law for bodily injury, death, and property damage sustained by any person arising out of the ownership, operation, maintenance or use of a motor vehicle or motorized bicycle shall provide personal injury protection coverage benefits [up to $250,000], to pedestrians who sustain bodily injury in the State caused by the named insured’s motor vehicle or motorized bicycle or by being struck by an object propelled by or from the motor vehicle or motorized bicycle.”

Though some TNC carriers have already operated in this fashion, making PIP payments to injured and uninsured Pedestrians struck by a vehicle used in ride-share activity, the Appellate Division has given certainty to insurers that doing so is a requirement under New Jersey law.