Insurance for taxis

Hi Mr Tan
What are your views about the taxi driver who discharge his insurance company from paying a third party claim for damage to their car? It is not fair to the third party who have to sue the taxi driver to recover the repair cost of $2,000. The offer of $300 by the taxi driver is ridiculously low.

REPLY
Currently, it is compulsory for a car owner to have insurance for third party injury, but not damage. In granting the licence to the taxi company, the Land Transport Authority should make it mandatory for the taxi to have insurance for third party damage as well.

The cost of insuring a car is about $1,000. The cost of insuring a taxi should be about $3,000 a year. This will add $10 a day to the cost of renting a taxi. I think that the taxi company should be required to buy the insurance and add this to the cost of the rental. The taxi should not be inadequately insured for property damage.