Cabbies scramble to reinsure following abrupt notice cancelling insurance
On Tuesday 8th May text messages were sent to thousands of London taxi and minicab drivers with the abrupt announcement that their insurance had been cancelled with immediate effect.
The surprising news revealed that Danish company Alpha, which insured up to 700 taxi drivers and 10,000 minicab drivers through UK brands such as Cover My Cab and Protector, had declared bankruptcy after being placed into liquidation four days earlier.
As the news sank in, drivers were left uninsured and out of pocket, having to stop work and scramble to rearrange their taxi insurance with no notice. Long queues formed outside Protector offices in London as policyholders tried to find out what was happening, but the lack of clear information was obviously frustrating for drivers trying to clarify the situation.
Massive Queues outside Protector. We are awaiting responses from the ABI, the Danish FSA ( ALPHA were a Danish Company)— The LTDA (@TheLTDA) May 9, 2018
Updates as soon as we have them! pic.twitter.com/TwTipUNXth
There’s no clear indication whether drivers who paid their full premium up-front will be reimbursed for the remainder of their insurance period, but drivers also had other financial concerns. Unable to work while they attempted to arrange new cover, and faced with the cost of a new policy, many drivers could face real hardship.
Drivers who didn’t immediately check their phones had no idea they were effectively driving without insurance, and others were faced with a difficult choice to drive passengers to their destinations or make their way home.
The Licensed Taxi Drivers Association (LTDA) has notified its members to ensure no one is unintentionally driving without insurance and is supporting anyone affected by the changes.
How can Fare Cover help?
We speak with taxi drivers every day, as such our whole team was concerned to learn of the developing situation last week. We handled a record number of enquiries from drivers who were making frantic attempts to arrange new insurance at very short notice. From those we engaged with a great many taxi and mini-cab drivers were fully insured and back on the road.
We urge anyone still affected by Alpha’s collapse to contact Fare Cover for help. As a specialist insurance broker for taxi insurance (and part of the long-established Complete Cover Group), we have access to specialist taxi schemes with some of the UK’s best known insurers, as well as our own in-house insurer, Mulsanne.
Fare Cover is particularly renowned for quoting for drivers who may find it difficult to get cover elsewhere, so if you’re struggling to rearrange your taxi insurance, we’re able to help.