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AVIS FAULTS STATE ASSEMBLY'S FAILURE TO ACT ON VICARIOUS LIABILITY REFORM

 AVIS FAULTS STATE ASSEMBLY'S FAILURE TO ACT
 ON VICARIOUS LIABILITY REFORM
 GARDEN CITY, N.Y., June 29 /PRNewswire/ -- Avis, Inc., the employee- owned rental car company with headquarters here, expressed today its "bitter disappointment" at the State Assembly's decision not to act on vicarious liability reform at the current session. As a result of this failure to act, Avis said that it will be forced to increase immediately its rental car rates in New York.
 Charles Bovino, executive vice president at Avis said, "For the past two years our company has respectfully petitioned the New York State Legislature to help resolve a serious problem facing the rental car industry in New York State. As a New York State-based company we felt that the legislature would certainly react positively to our plea. As regards the State Assembly, however, this proved not to be the case. Over the course of two years, even though the Governor's office and the State Senate leadership appeared ready to work with us to resolve the problem, the response of the State Assembly has been totally negative."
 Bovino said "the Assembly's failure to act dooms another of the bill's sections, which was state legislation to prohibit discrimination based on a person's residence in New York, a practice which Hertz has had in effect since January."
 "The failure also means that small rental car companies who merited relief from damages to rental vehicles will not be able to access rental driver insurance coverage, which was a provision of the bill."
 Regarding the Avis price increase in New York, Bovino said, Avis will not resort to the tactic of imposing surcharges simply because a renter happens to live in Manhattan, the Bronx, or any particular geographic location. We must recognize, however, that New York's antiquated law forces upon car rental companies a unique cost of doing business in the state, which our price structure clearly must reflect."
 Bovino also said, "Avis has delayed instituting a price increase during the period that the assembly was considering action to reform the state's vicarious liability law. That suspension is now obviously over," he said.
 Avis has estimated that New York's vicarious liability law costs the company $10 million a year to satisfy claims for accidents in which the company was totally without fault. Only one other state in the country, Florida, has a similar law whose impact is as damaging as the New York statute.
 -0- 6/29/92
 /CONTACT: Russell James of Avis, 516-222-4605/ CO: Avis, Inc. ST: New York IN: LEI SU:


SM-OS -- NY048 -- 4729 06/29/92 12:42 EDT
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Publication:PR Newswire
Date:Jun 29, 1992
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