Feds' Insurance Proposal Is Seen As Attack on Industry
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November 15, 2014 Feds’ insurance proposal is seen as attack on industry WASHINGTON — If federal pushing to raise the minimum the-road truckers to as much as $3 crease in insurance premiums, to tative at Lancer. “That could result regulators succeed in raising the level of liability coverage required million from the current $750,000. an average of more than $10,000 in a large consolidation in the minimum required liability insur- on buses and big rigs by sometime It should be kept in mind the annually per bus, says Lancer In- industry.” ance on passenger coaches to $10 next year, claiming it would in- last time Congress raised the limits surance Co., the nation’s largest Critics of the insurance pro- million, or possibly even $25 mil- crease commercial vehicle safety. it did so by a multiple of five. If motorcoach insurer. posal have long contended it is a lion, it would have a chilling effect Some have speculated the that happens this time around, “That would make it very hard thinly veiled attack on small busi- on small operators, as well as indi- FMCSA will seek to double the re- we’re talking about a $25 million to start-up a new bus company, and ness; that its likely purpose is to viduals trying to enter the busi- quirement for motorcoaches to minimum. smaller operators — with 1 to 15 reduce the number of small bus ness, industry executives contend. $10 million from the current $5 If a $10 million minimum re- units — would find it very diffi- operators and limit the number of The Federal Motor Carrier million, and to increase the mini- quirement is approved for buses, it cult to obtain coverage,” said Ste- new operators. Safety Administration has been mum liability coverage for over- could result in a 60 percent in- ven O’Shea, a marketing represen- CONTINUED ON PAGE 18 c Electronic logging devices: What’s the big deal? Automakers try EVERYWHERE — The inevi- to put the whole tability of federally mandated electronic logging devices already world on wheels has sunk in for a handful of motor- DETROIT — The nation’s car coach operators. builders, which dealt the bus in- While comments filed with the dustry a huge blow in the 1950s feds this past summer suggest and 60s when they put unprece- many carriers and their drivers dented numbers of Americans be- would rather park their vehicles hind the wheel of autos, are threat- than comply with the looming Big ening the industry again with their Brother mandate, early adopters of super aggressive marketing. the technology say it’s not that This year they are offering big bad. discounts, plus six- or seven-year In fact, they like it. loans, in some cases, to buyers “It has been outstanding. We who would have been turned down are very pleased with it,” reports in the past, to attract millions to Jeff Polzien, president of Red Car- their showrooms and get them in pet Charters in Oklahoma City. the driver’s seat. “The drivers really like it. It The auto industry is pushing saves them time, eliminating hav- hard to sustain its post-recession ing to fill out all the paper logs. I comeback, with carmakers resort- think there was probably some ing to tactics that some experts warn skepticism among the drivers at will lead to trouble down the road. first. We addressed that with some Photos by Fred Rayman Vehicle discounts have risen intensive driver training,” ex- Rick Whipple, safety and training manager at Red Car- con Technologies’ electronic logging device designed 5.5 percent from a year ago, even plained Polzien. pet Charters in Oklahoma City, demonstrates a Sau- to provide accurate reporting of driver activity. as the industry continues to add “If we tried to go back to paper factory capacity. logs now I think there would be a Congress ordered the FMCSA contends. A 256-page proposed personnel and commercial vehicle But the average price of a car mutiny. I’m exaggerating, but it more than two years ago to come rule was issued in March. inspectors. keeps rising, too, forcing some cus- does save them a lot of work,” he up with such rule. Technical specifications in the Many of the devices also can tomers to borrow for longer terms noted. The proposed rule is to take ef- proposal require that the electron- track vehicle location through au- — like seven years — to keep pay- The Federal Motor Carrier fect two years after a final version ic logging devices record date, tomatic positioning services — ments small. And automotive lend- Safety Administration currently is is adopted — possibly late in time, location, engine hours, mile- satellite-based global positioning ers are making more loans to peo- wading through a rule-making 2016. age, driver and vehicle/carrier systems or land-based systems or ple with low credit scores. process to impose regulations that The devices will improve en- identification, and the all-impor- both. On top of that, more than a would mandate paper driver log- forcement of driver hours-of-ser- tant driver time on duty, plus have Additionally, EDLs can calcu- quarter of new buyers are choos- books be replaced with electronic vice rules, thereby reducing fa- the capability to make the infor- late fuel usage and monitor such ing to lease, a historically high logging devices. tigued driving, the FMCSA mation available to enforcement CONTINUED ON PAGE 16 c CONTINUED ON PAGE 18 c PERMIT NO 1424 NO PERMIT PHOENIX AZ PHOENIX US POSTAGE PAID POSTAGE US PRESORT STD PRESORT 5 1 Nov. on or before deliver Please Postmaster: E N GINEE R ED APPEAL +economy Van Hool TD925 Can a double decker coach be both appealing and economical to operate? Optional Sky View Rooftop provides exciting views from all upper seating positions With Van Hool, the answer is, YES! Van Hool coaches are engineered to help owner/operators compete at their highest level. 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For more information or to add Van Hool to your eet, contact ABC Companies at: 877.427.7278 option 1, or visit www.abc-companies.com Bus & Motorcoach News INDUSTRY NEWS November 15, 2014 3 Workers get help from employers to buy health coverage NEW YORK — In an era of ance, coverage that easily could be individual coverage, a sign to them quired to comply with the new deal on government-run health in- lackluster or no growth for many better than what the employer that many people are losing cover- federal healthcare law known as surance exchanges, especially if small businesses, any increase in could provide. age at work. the Affordable Care Act, or they qualify for government hand- costs is unwelcome news. Health insurer Wellpoint said The brokerage HealthMarkets Obamacare. outs that will lower premium costs And, so it is with group health last month its roster of small busi- Inc. reports it has had a 40 percent As those policies come up for for individuals and families. insurance premiums. nesses has shrunk by 12 percent pickup in applications for individ- renewal, owners are having to de- The government will subsidize While the pace of premium in- this year. ual insurance. cide whether to buy new insurance coverage on the exchanges for in- creases for employee healthcare Nearly 3 percent of 1,600 “We’re seeing this happen with that complies with Obamacare dividuals earning up to $45,960. coverage appears to have slowed small businesses surveyed by the increasing frequency…,” Ken Fa- requirements. The income limit for a family of in many parts of the country, any Society for Human Resource sola, CEO of HealthMarkets, The healthcare law exempts four is $94,200. rise in premiums still represents a Management said they plan to based in North Richland Hills, companies with fewer than 50 Giving workers extra compen- challenge for lots of small firms. give employees subsidies next Texas, told a news service. workers. But many smaller com- sation to help buy insurance can Which may account for the year so they can buy their own If policy cancellations do rise panies provide health coverage be- result in higher income taxes for growing number of small business coverage on private insurance this fall, it would likely be due to cause insurance is a benefit that the employees, and it can also mean owners who are forgoing group exchanges. the fact many small businesses re- helps retain staffers and recruit top employers will owe payroll tax on coverage and giving their employ- Insurance brokers report they newed their coverage before Jan. talent. the money. Benefits attorneys and ees money to buy their own insur- are getting more inquiries about 1, 2014, when policies were re- But workers may get a better CONTINUED ON PAGE 15 c Academy Express buys New York City coach companies NEW YORK CITY — Acade- N.J., the largest family-owned name, as well as MCIZ’s contract tween Glen Cove, N.Y., and New Not included in the deal were my Express has wrapped up the coach company in North America with the New York City Board of York City. the more than 50 buses owned and purchase of two of the city’s major and the third-largest motorcoach Education, its bus stop in New Under MCIZ’s contract with operated by Go Bus and MCIZ.