Government's plans to legalise the operations of private hired (PH) cars in T&T is guaranteed to open a pandora's box. The warning comes from the country's first and longest standing chartered insurer, Bertrand Doyle, who on Thursday called on Minister of Transport Jack Warner, the man behind the sudden move, to rethink his position on legalising PH taxis to deal with the chronic transportation problems. Doyle believes the solution to the transport woes lie in a reliable public transport service and not making the wrong right. "How could they legalise something that is illegal? If this is the way they want to go, let the Government legalise cocaine and marijuana too," Doyle fumed. On whether the Motor Vehicles Act would have to be amended, Doyle said there was a slim chance of this happening since all Commonwealth countries were governed under the same Act. "But, if they do that it will be opening up a pandora's box."
Insurance will be null and void
Doyle said from the minute the Government legalises PH taxis "the insurance of those motors vehicles will become null and void" because the cars would no longer be used for social, domestic and pleasure purposes, but to transport passengers. "That will be the first headache for the drivers." Doyle said there were several types of PH drivers ranging from the occasional, night, after hours and those who work peak time. "I am surprised that Warner did not contact the insurance firms for their views." Doyle said he knows for a fact that drivers who were issued taxi badges over the years have since turned their cars from H to P because they pay less insurance premiums, are not restricted to certain streets and are not required to have their cars inspected.
"Even though they make the operation legal, some drivers who do not possess a driver's permit, insurance or have a road worthy car will still operate on the roads. You would not be able to stop them." While some insurance firms who sell motor insurance were not willing to insure the PH taxis, Doyle stated that the ones that offer coverage will have difficulty in issuing claims. He challenged the Auxillary Transport Association(ATA), the umbrella body for PH drivers in T&T, to name the insurance firm they are negotiating with, saying he was sure "it would not be a high grade insurance firm." Doyle, who works as an insurance consultant, said he could not understand why Government was condoning drivers who were operating illegally since it was a moral hazard.
Problems collecting accident claims
A leading underwriter at an insurance firm in Port-of Spain said he was totally against the proposal because it would only encourage people who have vehicles that are not road worthy to apply for a PH licence. Stating that while it was mandatory for H drivers to get a certificate of good character, have their cars inspected and go through a pre qualification to get a taxi badge, the PH drivers may not face this, which can lead to insurance firms receiving claims which they never meant to write. "Passengers would have problems collecting claims if they get involved in an accident." The underwriter believes the Government went about it the wrong way. "Why can't they enforce these people to get a taxi badge and register the vehicle as a taxi?"
The underwriter said if PH taxis were legalised this can lead to the Insurance Act being amended. While the Act stipulates what kind of vehicles can be used as a taxi "you would now have to change the legislation to say that the Act now includes PH cars." If the Act is not amended, the underwriter said passengers travelling in PH taxis "would not be able to collect any claims."
ATA: It will create 60,000 jobs
President of the ATA, Gerard Whyms forsees the opening up of 60,000 jobs if Government gives the drivers the green light to 'pull bull'.
Between last Thursday and Friday, Whyms said approximately 200 PH drivers from Point Fortin had registered with ATA. ATA has 500 registered drivers, some of whom are part time drivers. Whyms admitted that some of the drivers had minor infractions with the law and were not be able to obtain a certificate of good character, while others could not land themselves permanent jobs. "There are deeper social issues to be looked at. We can't leave these drivers to the wolves."
'Not condoning bandits, rapists'
Whyms, however, assured that their drivers will face a screening process to ensure the passengers' safety. "We are not condoning bandits and rapists," he said. The association, Whyms confirmed, will also supply the police with an ATA members listing, while all registered cars will be colour-coded according to the areas they work and drivers will have to adhere to 17 of its rules when on the roads. With regard to insurance coverage, Whyms said ATA was dealing with an insurance company, but refused to give its name. "They will be giving us a blanket coverage to ATA members." Messages left for Willard P Harris, vice president of the Association of T&T Insurance Company for a comment, were not returned.
RIGHT: Warner - We are consulting with stakeholders
"There will be no trial run it's either on or off."
In a response yesterday, Works and Transport Minister Jack Warner said consultations regarding legalising PH drivers were well on the way and should be completed before month's end. "I have a team under the Chief Traffic Planner that is talking to insurance companies and to other stakeholders. I imagine that all this will be finished well before the end of the month," he said. When asked if the Motor and Vehicle Act will need to be amended, he said, "It doesn't have to get a parliamentary amendment, it can be done through the Cabinet." He said he was given that advice by members of the legal fraternity.
"I am awaiting first to see what the consultations come up with and I will take it from there," he said. Warner said there would be no trial run "it's either on or off."