People's working habits are evolving, but government policies are reluctant to catch up. However, in one instance, a program in New York was innovative.

Workers' compensation, paid time off, and other employment benefits are frequently only accessible to people with full-time jobs. However, as more Americans work freelance or on a contract basis, there is a need for a different type of benefits system that does not rely on having a single, full-time employer.

There are hardly many options. However, one, known as the black car fund, is frequently been proven beneficial for cab drivers.

The fund is exclusive to the state of New York, whose Legislature established it in 1999 to offer workers' compensation payouts for independent contractors hurt at work.

It covers around 125,000 drivers nationwide, whether they work as independent contractors for Uber, Lyft, or more established taxi or luxury services. It is funded by a 2.5 percent consumer premium on each trip.

Other states, notably Washington and New Jersey, are debating legislation that would require the collection of fees for all types of freelancing services. These expenses are then used to pay for the benefits of those employees.

What Is The Origin Of The Black Car Fund, And What Are The Black Car Fund Benefits To Independent Car Drivers?

The Black Car Fund, a non-profit organization, offers workers' compensation insurance to black car drivers who are independent contractors. Together, the industry and Government developed a novel, ground-breaking approach in which a small premium or surcharge would be charged for each ride. This has resulted in (additional) revenue for drivers who would not have received it, primarily as independent workers.

The black car fund workers compensation offers all of its covered drivers an extensive array of free health, fitness, and educational advantages. Along with prescription, urgent care, and diagnostic imaging discounts, these extra benefits also include telemedicine coverage, vision coverage, dental insurance, and mental health. The little premium that riders pay on each trip is used only to pay for these benefits.

Why is the Black Car Fund Important For Cab Drivers?

Everyone should care for drivers both during and beyond the current crisis (COVID-19 crisis) because they are crucial to the economy and our recovery. Drivers should have access to benefits that are provided at no cost to them so that they can continue to work and stay healthy without worrying that a lack of coverage would result in protracted absences from work without pay or avoidable health concerns.

Even the state legislature voted in favor of a plan that would have increased the consumer cost by 0.5 percentage points, allowing the black car fund to add some new perks without hurting driver pay.

Conclusion

Black car fund is essential for cab drivers in multiple ways. More than 100,000 members, including Lyft and Uber drivers, can get health, fitness, and education benefits from the black car fund.

More recently, a rise in the ride-hailing client premium to 3% has made it possible for further driver perks, such as the dental checkups, cleanings, and vision coverage announced last summer.

IDG Legal provides different services in which you can get the help you need from vetted, experienced attorneys to claim your black car fund. Thus you can contact us to learn more about IDG Legal services.