Cab and courier uninsured on the road
December 11, 2018
Cab drivers and couriers necessarily drive around uninsured because they cannot get coverage from insurance companies. When they can get coverage, the premium is so high that it is unaffordable for carriers.
There are currently 1135 cabs registered as uninsured, according to the National Road Administration (RDW). The number of light commercial vehicles registered as uninsured is 20,784.
Earlier this year, we reported that as of January 1, 2018, many insurers have decided to stop insuring cabs. Insurers feel that covering the risks of cab companies is too risky. As a result, entrepreneurs with a cab or courier service who want to take out cab insurance with WA coverage or all-risk coverage will have to rely on De Vereende. De Vereende Verzekeringen (formerly Rialto Verzekeringen) is the company that is willing to insure special risks where regular companies drop out. The premiums of these insurances are a lot higher.
The high premiums are out of reach for most cab and courier companies. The issue has been in play since 2016, when insurance companies committed to a directive that imposes capital, risk management and reporting requirements on all European insurers. That means insurers are saying goodbye to their loss-making products en masse. On auto insurance, insurers have been making little to no profit for years.
People who go on the road uninsured are fined and have to pay for any damage caused. Especially when this runs into tons, this can be very annoying.
As a result, especially small business owners will dare to take this risk. Think of self-employed workers who do not drive for a well-known cab company or for a cab platform.
A solution is still a long way off. The minister responsible, Wopke Hoekstra, has little regard for the problem.
When asked, the Dutch Association of Insurers says it is aware of the problem: "It is high on our agenda, but there is no immediate solution. The market for non-life insurance in particular is so competitive that red figures are often written."
"At Alpina, we compare car insurance. The power of comparison is to find the best car insurance at a fair premium. Our mission becomes more difficult because insurers are failing in their duties. Motor vehicles must be insured; that's what insurers were created to do. To keep costs covered, they may increase premiums. Excluding cabs from insurance cannot be the intention."
Yet this is what is going on en masse right now. In the Netherlands, there is a safety net for this kind of situation. That is De Vereende. However, it has limited options in terms of coverage. For example, All-Risk coverage is very expensive and for models with a list value above € 90,000.00 not even possible.