Officials from the city of Dallas have yet to be fully convinced that the taxi company’s coverage is adequate.
Though Yellow Cab Company in Dallas has been making the effort requested of it to show that its taxis have adequate auto insurance coverage in order to comply with the city’s requirements, it has – as of the writing of this article – been unsuccessful.
This insurance news is according to a recent update from the city attorney’s office.
Yellow Cab’s parent company was asked to submit the documentation regarding its auto insurance that it claims shows that it has adequate cover which meets the requirements of the city of Dallas for taxi companies. This submission was made and the city’s officials determined that this business – the largest cab company in the city – was in violation of those regulations and had been for many years as it was self-insuring.
This meant that it was providing its own auto insurance, which was against the city’s regulations.
The company was providing its own auto insurance for claims of up to $250,000. An ordinance in the city said that this was not an allowable practice because it would put victims making claims at a disadvantage, as it would be in the company’s favor to reject claims as it would save them money by not having to make payments.
Now that the city has reviewed the documents that Yellow Cab has submitted, they have decided that the company did “not establish compliance” with the auto insurance regulations. This, according to a letter written by Chris Bowers, First Assistant City Attorney, to an Irving Holdings Inc. lawyer. That is the parent company of Yellow Cab as well as other taxi businesses.
The company was given until last Monday, at noon, to provide additional documentation to show that all of its cabs – of which there are over 1,300 – have adequate auto insurance. The company did provide additional documentation, but at the writing of this article, the city had not yet determined whether or not compliance had been adequately proven or if action would be required to make sure that the taxis in Dallas have appropriate auto insurance coverage.