The Federal Motor Carrier Safety Administration (FMCSA) will withdraw a rulemaking designed to explore the pros and cons of increasing liability insurance minimums for motor carriers, news outlets and trade groups report. The agency is withdrawing the rule because of a lack of data from insurance providers and carriers, according to the reports.
John V. Kulik, executive vice president of the Pennsylvania Petroleum Association, in a June 5 email to members, points out that The Petroleum Marketers Association of America has opposed the increase since it was proposed on Nov. 28, 2014.
“FMCSA had publicly entertained the idea of increasing requirements to as much as $4.5 million per truck for general freight, and a hike to as high as $10 million for petroleum marketers from the current $750,000 in liability insurance for general freight, $1 million for home heating oil and $5 million for gasoline and other hazardous materials,” the email notes. “Under this scenario, premiums would have been increased approximately 500 percent.”