The city is now accelerating their demands that the taxi company meet the regulations.
Following the discovery that Yellow Cab had not actually been following the Dallas auto insurance rules for taxi companies, a spokesperson for the city has announced that they are expediting the process to ensure that this business complies with the regulations for operation.
The problem arose when it was discovered that Yellow Cab has been self-insuring, which is against Dallas law.
Critics have suggested that Dallas has been deliberately been looking a blind eye to this failure to comply with the city’s auto insurance regulations. The issue is that by self-insuring, it means that the taxi company essentially becomes its own insurer and has an incentive to deny claims to victims so that they will be able to save more money by reducing their payouts.
Yellow Cab had initially been given thirty days in which to comply with the auto insurance rules in Dallas.
That deadline was given by the city council during an emergency meeting. However, concern has been rising regarding the fact that there continues to be 800 cabs driving in the city that do not have the proper taxi auto insurance coverage, and a spokesperson for the city has now said that negotiations have been sped up to try to correct this issue sooner, rather than later.
Yellow Cab has pointed out that its form of auto insurance coverage has never been hidden and that it was clearly stated in its documentation to receive its licenses, which have been submitted on time every year. Public records do show that the company was submitting statements to show that it was self-insured, and yet it continued to receive its license approvals in Dallas, for reasons that have yet to be explained.
According to the mayor of Dallas, Mike Rawlings, Yellow Cab and the city are holding “a lot of conversations right now” in order to correct the practices that have to do with providing their own auto insurance. Moreover, this has caused other cities to start to look at their own situations and whether or not they have also been approving licenses for taxi companies that are not following their coverage regulations.
