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.
MULTIMEDIA
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Photos: 60 accidents a day involving TAXIS
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.
