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60 accidents a day involving TAXIS
By Christopher Tan, Senior Correspondent
TAXI drivers are either the most dangerous or hard-luck drivers on the road. They are behind the wheel of 3 per cent of Singapore's vehicle population but are involved in 14 per cent of the accidents.
Things seem to be getting worse, with taxi companies seeing their premiums soar over the last few years, and one insurer which used to focus on cab insurance dropping out altogether.
Between 2007 and last year, there were about 22,000 accidents each year involving taxis, or an average of 60 a day. It also works out to nearly one accident for every cab on the road.
On average, there were 162,000 motor accidents a year over the same period, or one in every six vehicles.
Taxi insurers were not available to comment, but a senior executive at leading motor insurer Chartis said: 'We do see a rising trend from accidents involving taxis.'
According to the Land Transport Authority, taxis make up less than 3 per cent of the total vehicle population of 933,000.
The accident situation is not unique to Singapore. A 2008 state study in Connecticut found that the taxi accident rate there was more than quadruple that of the passenger vehicle rate.
Some note that taxi drivers have far greater odds of getting into collisions given the long hours they spend on the roads.
And the situation may be worsening.
ComfortDelGro, the largest player with around 15,500 cabs, has seen its insurance expenses rising by millions over the last few years.
Last year, its taxi premiums totalled $71 million - $5 million more than in 2008, and more than double its 2004 bill of $32.4 million. In the meantime, its fleet size has hardly changed.
The smaller players are seeing it too. Smart Taxis managing director Johnny Harjantho said the trend of rising premiums is 'worrying'.
Owner-operators seem to be hit the hardest. One of them, 62-year-old Goh Seow Chai, has been a cabby for 40 years. 'Just three years ago, third-party coverage cost as little as $1,500,' he said. 'Now, it's around $4,000 - if you have been accident-free. If you had accidents, it can be as much as $10,000 to $13,000.
'I know drivers who had to borrow from relatives. They have no choice, they need to drive to make a living.'
Third-party injury liability cover is mandatory for road users in Singapore.
On average, motor premiums for other vehicles have risen by a less drastic 30 per cent since 2004.
Some observers point to an explosion in the number of taxis as having created a situation of supply outstripping demand.
Since the market was liberalised in 2003, the taxi population has soared by 30 per cent to around 25,000 now.
Taxi ridership, on the other hand, has grown by a more modest 9 per cent.
Until a recent fare increase bolstered their take-home pay, cabbies were clocking longer hours and literally racing one another for fares, observers said.
'Some drivers tend to be reckless, and stop or swerve suddenly to pick up fares,' said General Insurance Association (GIA) president Derek Teo. 'I have personally encountered this.'
So have other motorists. In January, lawyer Ye Su Jin, 37, was driving on the Pan-Island Expressway to work one morning when a cab 'cut into my lane, almost hitting me'.
Then he 'jammed (on the) brakes suddenly'; and Ms Ye's car rear-ended the cab.
After the incident, she did some checks and found that the cabby had been involved in five accidents in the past two years.
In April, her insurer received a letter from a law firm acting for the cabby claiming for more than $8,000 in damages, including medical expenses. The case is pending.
Company director Guo Yanhuai, 46, recalled making a turn at a yellow box junction some time in 2006, when a taxi collided with his car at fairly high speed.
Last year, the cabby sued, and Mr Guo's insurer paid out nearly $35,000. It paid another $11,000 for Mr Guo's damages.
Mr Guo's car insurance premium has not soared, a sign that the insurer did not deem him to be more than 20 per cent at fault.
Mr Teo of the GIA said cabbies could actually be competent drivers given their vast experience on the road. 'It all boils down to education to inculcate good driving habits and road safety, plus practising road courtesy and consideration for other road users,' he said.
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By Christopher Tan, Senior Correspondent
TAXI drivers are either the most dangerous or hard-luck drivers on the road. They are behind the wheel of 3 per cent of Singapore's vehicle population but are involved in 14 per cent of the accidents.
Things seem to be getting worse, with taxi companies seeing their premiums soar over the last few years, and one insurer which used to focus on cab insurance dropping out altogether.
Between 2007 and last year, there were about 22,000 accidents each year involving taxis, or an average of 60 a day. It also works out to nearly one accident for every cab on the road.
On average, there were 162,000 motor accidents a year over the same period, or one in every six vehicles.
Taxi insurers were not available to comment, but a senior executive at leading motor insurer Chartis said: 'We do see a rising trend from accidents involving taxis.'
According to the Land Transport Authority, taxis make up less than 3 per cent of the total vehicle population of 933,000.
The accident situation is not unique to Singapore. A 2008 state study in Connecticut found that the taxi accident rate there was more than quadruple that of the passenger vehicle rate.
Some note that taxi drivers have far greater odds of getting into collisions given the long hours they spend on the roads.
And the situation may be worsening.
ComfortDelGro, the largest player with around 15,500 cabs, has seen its insurance expenses rising by millions over the last few years.
Last year, its taxi premiums totalled $71 million - $5 million more than in 2008, and more than double its 2004 bill of $32.4 million. In the meantime, its fleet size has hardly changed.
The smaller players are seeing it too. Smart Taxis managing director Johnny Harjantho said the trend of rising premiums is 'worrying'.
Owner-operators seem to be hit the hardest. One of them, 62-year-old Goh Seow Chai, has been a cabby for 40 years. 'Just three years ago, third-party coverage cost as little as $1,500,' he said. 'Now, it's around $4,000 - if you have been accident-free. If you had accidents, it can be as much as $10,000 to $13,000.
'I know drivers who had to borrow from relatives. They have no choice, they need to drive to make a living.'
Third-party injury liability cover is mandatory for road users in Singapore.
On average, motor premiums for other vehicles have risen by a less drastic 30 per cent since 2004.
Some observers point to an explosion in the number of taxis as having created a situation of supply outstripping demand.
Since the market was liberalised in 2003, the taxi population has soared by 30 per cent to around 25,000 now.
Taxi ridership, on the other hand, has grown by a more modest 9 per cent.
Until a recent fare increase bolstered their take-home pay, cabbies were clocking longer hours and literally racing one another for fares, observers said.
'Some drivers tend to be reckless, and stop or swerve suddenly to pick up fares,' said General Insurance Association (GIA) president Derek Teo. 'I have personally encountered this.'
So have other motorists. In January, lawyer Ye Su Jin, 37, was driving on the Pan-Island Expressway to work one morning when a cab 'cut into my lane, almost hitting me'.
Then he 'jammed (on the) brakes suddenly'; and Ms Ye's car rear-ended the cab.
After the incident, she did some checks and found that the cabby had been involved in five accidents in the past two years.
In April, her insurer received a letter from a law firm acting for the cabby claiming for more than $8,000 in damages, including medical expenses. The case is pending.
Company director Guo Yanhuai, 46, recalled making a turn at a yellow box junction some time in 2006, when a taxi collided with his car at fairly high speed.
Last year, the cabby sued, and Mr Guo's insurer paid out nearly $35,000. It paid another $11,000 for Mr Guo's damages.
Mr Guo's car insurance premium has not soared, a sign that the insurer did not deem him to be more than 20 per cent at fault.
Mr Teo of the GIA said cabbies could actually be competent drivers given their vast experience on the road. 'It all boils down to education to inculcate good driving habits and road safety, plus practising road courtesy and consideration for other road users,' he said.
[email protected]
