DALLAS –– After being exposed for its bungled regulation of Yellow Cab, a spokesperson for the city of Dallas says it is expediting the process to get Yellow to come into compliance with insurance regulations.
Critics say Dallas has for years granted special treatment to Yellow by allowing it to self-insure. Self-insurance turns a cab company into its own insurance company with an incentive to deny injury claims to save money.
On Sunday following an emergency meeting, the council gave Yellow 30 days to comply with city rules. But concern is growing over having more than 800 cabs on the road without proper insurance and a city spokesperson says that put negotiations into overdrive.
Public records show Dallas knew Yellow Cab was self-insured, putting passengers at risk. For reasons it cannot explain, the city let it happen. Injured people say Yellow tried to save money by denying their claims.
Diana Lambert was injured in a Yellow cab wreck. Yellow says its driver, a sub-contractor, is at fault and the company should be held blameless.
“I can’t work anymore. And I’ve worked all my life. My life has just been upside down, as far as living,” Lambert said.
Dallas Mayor Mike Rawlings says the city and Yellow are having “a lot of conversations right now” to eliminate the company’s self-insurance practices.
And now, News 8 has learned, this emergency goes beyond the city of Dallas. It now appears Yellow has operated without the required insurance at Dallas/Fort Worth International Airport, as well. DFW is the most important taxi hub in North Texas.
Proof of insurance, filed by Yellow at Dallas City Hall, clearly shows the company is “self-insured” for the first $250,000 of its $500,000 policy. That violates city code. But for reasons the city of Dallas cannot explain, it allowed Yellow to break the rules.
At DFW Airport, self-insurance is also against the rules. Yellow turned in an insurance document to officials there that certifies it has $500,000 of coverage. It makes no mention that its drivers are self-insured. And DFW was unaware Yellow self-insures News 8 told them.
Rawlings said he does not believe an independent investigation is warranted of special treatment for Yellow.
“First of all, everybody is investigating already,” Rawlings said. “So, we’re going to get that information. So, just the normal course of me asking questions, we’re going to be investigating.”