Yellow Cab fails to satisfy Dallas insurance requirements

Print
Email
|

by DAVID SCHECHTER

Bio | Email | Follow: @davidschechter

WFAA

Posted on November 18, 2013 at 1:35 PM

Updated Tuesday, Nov 19 at 7:44 PM

NEWS 8 INVESTIGATES

DALLAS — Yellow Cab, which the city of Dallas has allowed to operate without the proper insurance for more than a decade, has failed to satisfy to the city that it has obtained sufficient coverage.

The city demanded Yellow come into compliance following a series of investigative reports by News 8 that exposed special treatment for Yellow by the city. Yellow turned over new proof of insurance late last week. 

On Friday, the city sent Yellow a letter rejecting the company’s claim that it is in compliance. It says Yellow’s attempts to establish insurance coverage “…do not establish compliance…” and the documentation is “…identical in all respects…” to previous documentation, except for the name of a new insurance company. 

Councilwoman Sandy Greyson says the City is right to not back down.

“I think it’s good that we’re holding Yellow Cab’s feet to the fire and making sure that indeed they do have the insurance that complies with our ordinance,” Greyson said.

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.  Our reports showed that Yellow carries $250,000 of self-insurance, which is not allowed.

This latest letter, from the City Attorney’s office now indicates Yellow has been self-insured  “…for the past 12 years."

Greyson, who asked Interim City Manager A.C. Gonzalez to expedite this process in the name of public safety, says she’s satisfied the City is acting swiftly.

“I think, if I as a council member am not satisfied in a relatively quick period of time that we’re getting to the bottom of this, then I might want an outside investigation,” said Greyson.

With the clock ticking on public safety, the letter from the City to Yellow asked the cab company to submit more detailed information by noon today.  It appears that has happened and discussions between the two parties continue.

News 8 has reported that, because it self-insures, Yellow pays about $850 dollars less per car, in insurance costs, than its competitors.  By our calculations, Yellow could’ve saved as much as $13.2 million by self-insuring for 12 years.

E-mail dschechter@wfaa.com

Print
Email
|