Yellow Cab files documents alleging drivers now properly insured

Taxi regulations

Credit: WFAA

For the last 10 years, the City of Dallas has let Yellow Cab operate without the same level of insurance required of its competitors.

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by DAVID SCHECHTER

Bio | Email | Follow: @davidschechter

WFAA

Posted on November 15, 2013 at 3:42 PM

Updated Friday, Nov 15 at 3:56 PM

DALLAS –– After years out of compliance with Dallas city ordinances, Yellow Cab has reportedly submitted documents to City Attorney Warren Ernst to prove its drivers now have proper proof of insurance that meets municipal code regulations.

In Dallas, cab companies are required to carry $500,000 of insurance and are not allowed to self-insure. The idea is to keep cab companies from acting like their own insurance companies with an incentive to deny an injury claim to save money. 

News 8 reported Sunday that the city has for years allowed Yellow Cab to carry $250,000 of self insurance despite the city code. Victims allege that the company sometimes used hard-nosed tactics to deny injury claims to people hurt in cab wrecks.  That night, in response, the City Council called an emergency meeting to address the problem. 

A memo from Interim City Manager A.C. Gonzalez indicates that Yellow has provided the city with documentation proving its drivers are all properly insured. 

“Last night I was made aware that Yellow Cab submitted documentation that they have acquired appropriate coverage for their fleet,” wrote Gonzalez in an email to the council. “Code enforcement, legal, risk management are now going through these documents to verify compliance.” 

Email dschechter@wfaa.com

 

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