Thursday, July 15 2010

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Douglas Camacho...

RIDE at your own risk. The advice comes from stakeholders in the insurance industry in response to Government’s proposed legalising of ‘PH’ drivers to cater to the needs of those who cannot readily access transport to and from where they live.

They say unless PH taxis are properly covered by insurance, passengers are taking a dangerous ride. In the event of an accident in a taxi, passengers are covered by the provisions of the policy issued to the owners of taxis.

In response to the proposed measure, president of the Association of Trinidad and Tobago Insurance Companies (Attic) Douglas Camacho told Newsday that insurance companies would have to adjust their premiums accordingly if ‘PH’ is made legal. “Insurance is a priced product and ‘PH’ is illegal. ‘PH’ does not exist in law and if the Government wants to turn something from illegal to legal, then the price will change. Insurance companies would have to assess the risk and charge a premium price accordingly. Until such time, insurance companies will not deal with any illegality,” Camacho said.

The Attic president is hoping insurance companies would have an input in the proposed amended legislation to cover ‘PH’ passengers by a new ‘PH’ insurance policy.

One suggestion being proposed by insurance stakeholders, is for Government to absorb the risk for ‘PH’ passengers. But Camacho said that was not Attic’s view.

“We cannot say at this time what the legislation would propose, but the view is being bandied about that if the Government is converting an illegal act into a legal one, it should take the risk for the passengers,” Camacho said.

One other consideration, he added, is whether ‘PH’ insurance would be matched at the same insurance premium that the taxi drivers pay.

“There are factors that would play off, but we’ll have to wait and see,” he said.

Government plans to legalise use of private cars for hire, allowing drivers to apply for a special permit to convey passengers. The use of private cars for hire is illegal under the Motor Vehicle Act and is punishable by a fine and disqualification.

In what has been described as a radical move to assist the travelling public in remote districts of the country, Minister of Works and Infrastructure Jack Warner announced at a post-cabinet meeting that the special licences would allow the ‘PH’ drivers to ply their trade legally.

Senior Counsel Hendrickson Seunath, who has argued hundreds of personal injury cases in the High Court arising from motor vehicle accidents, said a factor which Government needs to take into account is the standards that must be met by the proposed ‘PH’ driver. “A taxi driver is of a certain class, rather, is obligated to abide by certain rules and regulations of his trade. I hope a ‘PH’ driver would be made to be so obligated. I hope we are not legalising lawlessness,” he said.

Chairman of Capital Insurance, San Fernando,Yacoub Ali, said insurance companies look forward to the amendment in order to determine how insurance for ‘PH’ vehicles would be priced.