In The News
Pennsylvania moves forward with indemnity protection
The Pennsylvania House voted unanimously Tuesday, June 22, to do away with indemnification clauses in motor carrier transportation contracts. It now moves to the Senate.
Joe Rajkovacz, OOIDA’s director of regulatory affairs, said truckers welcome the news that the indemnity protection is advancing in Pennsylvania.
“This kind of legislation is good for truckers,†he said.
“It stops the predatory practice of truckers being coerced into indemnifying shippers or receivers from their own negligence. It also renders illegal the practice of receivers making unloading conditional on unattainable insurance – which is nothing more than a ploy to force truckers into paying for in-house unloading services.â€
Sponsored by Rep. Mark Longietti, D-Hermitage, the bill is intended to level the playing field for trucking companies and professional drivers. Shippers that improperly load product would be prevented from shifting liability. Contractual language to the contrary would be void.
Specifically, it would void indemnity provisions in all future contracts for the transportation, loading, unloading or incidental services of property by motor carriers for transportation.
“This bill is about fairness,†Longietti said in a statement. “Pennsylvania is one of the largest motor carrier states in the country, and this bill will help motor carriers to remain viable, particularly in these tough economic times.â€
At least 16 states have passed some version of indemnification limitations, and at least a dozen other states are looking at doing the same. In Louisiana, lawmakers have forwarded to the governor a bill that addresses the issue.
The Pennsylvania bill – HB2375 – is awaiting consideration in the Senate Transportation Committee.
To view other legislative activities of interest for Pennsylvania, click here
.
Editor’s Note: Please share your thoughts with us about the legislation included in this story. Comments may be sent to
[email protected]
.
www.LandLineMag.com