NS taxi drivers urge regulator not to pass on higher insurance rates

NS taxi drivers urge regulator not to pass on higher insurance rates | Insurance Business

NS taxi drivers urge regulator not to pass on higher insurance rates

Taxi drivers in Halifax, NS are requesting the Nova Scotia Utility and Review Board not to approve incoming applications for taxi insurance rate increases.

The Facility Association, which provides high-risk automobile insurance for nearly all NS taxis, has applied to the board to increase taxi insurance rates by 25%.

Previously in 2017, the association applied to raise rates by 25.3%. In November, the board instead permitted a smaller 3.1% increase.

Drivers in the province are arguing that the higher rates are too expensive for them, and could ultimately hurt their passengers as well.

“I don’t think they should increase anything. What happened in one year? Why are they coming back again?” United Cab Drivers Association of Halifax president Darshan Virk told CBC News in an interview. “I think they’re just appealing the decision of the last time, is the way I look at it.”

Virk said that he represents about 300 drivers in Halifax, and many of his association’s drivers have written to the board to reject the rate application.

“They keep on asking for an increase every second year. I think that’s too much for the public and the taxi industry to bear,” he added.

Facility Association has explained that the increases are a necessary adjustment.

“We review our rating programmes annually for all of the significant classes of auto insurance provided through Facility Association,” said Facility Association president and CEO David Simpson in an email to CBC News. “The rate application arose as a result of that review process.”

“As for the amount of the increase, our actuaries are of the view that it’s what [is] required to cover the costs of providing the insurance (actually, the actuarial indication is a little higher).”

 

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