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IN THE FIRST INSTALMENT OF OUR SPECIALIST SPOTLIGHT SERIES, ONE OT OUR DIRECTORS GARY TALKS ABOUT THE HISTORY OF CABSURANCE, CARRYING ON HIS DAD’S LEGACY AND AN UPDATE ON THE TAXI INSURANCE MARKET.

Hi Gary, thank you for taking part in this interview. Can you start by telling us how long you have worked at Cabsurance and how your role has developed over the years?

Well the business was founded by my dad in 1963, under the name Emrose Insurance Brokers. I joined the company when I was 19 and I have been here ever since – 40 years! When I joined in the 70’s, my dad launched the Cabsurance brand and put my brothers and I in charge of growing the business, which is what we have done. Most people who have worked for the company have stayed with us a long time, but a few have retired over the years.

I have always been focused on business development and expanding our schemes and facilities to ensure we have the best offering for our clients.

40 years is a long time! What has kept you in the industry for so long?

The fact it is our family business. My dad sadly passed away, so my brothers and I are continuing his legacy which makes me very proud. Not many people can say they work with their family and get on so well! We are very lucky.

It’s great to hear that you are such a tight-knit family and team, I’m sure your dad would be very proud. So what do you enjoy most about your role?

As Cabsurance is growing, we are hiring new employees and benefitting from our parent company Specialist Risk Group’s (SRG) platform function which includes claims, marketing, IT etc. I am hoping that the increase in resource will give me more opportunity to focus on doing what I enjoy the most – generating new business and speaking to our clients.

Thanks Gary. What was your first job and how has it led you to where you are today?

My first job was working for one of my dad’s friends at a company registrations business in the City where I worked for 6 months. Then I joined NIG where I spent a year and a half learning the basics of insurance before I started working at Emrose. As I said, I’ve now worked for the business for 40 years and I have learnt everything I know through experience.

Thinking back over the past 40 years, what is your proudest achievement in your career to date?

It would have to be watching Cabsurance grow. When my brothers and I were searching for the right owner to take Cabsurance to the next level, it was nice to be approached by a company like SRG – we felt very proud.

What are you most excited about for the future of Cabsurance, and in addition, SRG?

Growing! Being part of SRG is helping us achieve this, with everyone sharing the same goals and objectives. We know how important insurance is for the taxi industry and therefore it is vital that we offer the right products for them. There are some exciting projects in the pipeline.

We can’t wait to hear about them! Can you let us know if you’re currently observing any trends in the taxi insurance market?

The taxi insurance market has always been price driven, but it is even more so now because of what is going on in the world. However, I always tell clients, you get what you pay for and whilst going for the cheapest premium can be tempting, the service may come back to bite you when it comes to making a claim or getting in touch for advice. We’re proud to have a really high renewal rate as we really look after our clients!

Thanks Gary. What advice would you give someone looking to start their career in the insurance industry?

You can read as many books and take as many exams as you like, but in my opinion, experience is the most important thing of all. When you have the right mindset, you can learn so much which really helps with the day-to-day tasks.

That’s interesting, thank you. To finish off with some light-hearted questions, where is your dream holiday destination?

If I was wanting an active trip, it would be New York without a question of a doubt! I went with my family in 2018 and my son and I went back a year later because it is so amazing. For a chilled holiday probably Lake Garda – I love that you can travel everywhere by river boats.

Amazing choices! Who inspires you?

If I were to choose anyone it would be my dad, he was such a clever man.

Finally, how would your friends describe you?

I have run 3 London marathons so I think they would say I am very fit and sporty. Also they would say I am easy to get on with.

To get in touch with Gary or one of our other taxi insurance specialists, click here.

EARLY REPORTING INITIATIVE – THE GOOD, THE BAD AND THE UGLY

SCENARIO 1 – PREFERRED (THE GOOD)

Insured drove into rear of third party vehicle. The driver completed a Scene of Accident Information Form, submitted a claim on The Specialist Risk Group Claims App and provided these to third party who signs for receipt, providing information on mitigation of loss and the offer of a free replacement vehicle if the Insurer agrees the third party is innocent and a replacement car is necessary. Incident reported within 24 hours. Third Party Pro Activity initiated immediately. Contact made with innocent party who accepts Insurer’s offer to manage the vehicle repair and provide replacement vehicle.

Representation

Third party had no need for Third Party representation as they were contacted quickly by Insurer before seeking representation.

Credit Hire / Repair

Both avoided. Early Third Party Pro Activity has allowed Insurer absolute control of the repair cost, duration of repair and alternative vehicle provision whether by providing courtesy car (preferred) or equivalent vehicle for duration.

Personal Injury

Whilst the Third Party indicated a small niggle from being hit in rear, medical attention not sought and has decided not to seek advice in view of the early contact by insurer and provision of vehicle repairs and replacement vehicle.

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COSTS INVOLVED AND OUR COMMENTS

Cost minimised

Repairs: £2850 + VAT

Duration: 10 working days

Replacement vehicle: No direct cost as courtesy car accepted

Personal Injury: No claim as Third Party satisfied with fast and efficient service

Cost of representation: Avoided

Total: £2,850 + VAT = Best Fit

 

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SCENARIO 2 – SOME RESISTANCE (THE NOT SO GOOD)

Same incident BUT incident not reported to Insurer for 15 days. However, Scene of Accident Information Form was completed by driver and provided to Third Party who signs for receipt.

Representation

Too late for Insurer to act proactively. Third Party obtains representation through broker with Credit Hire Organisation (CHO). CHO acts quickly and provides 1st advice of claim to Insurer on day 2.

Credit Hire / Repair

Claims presented for credit hire and credit repair. As Third Party proved their innocence the credit repair and credit hire processes start immediately. Period of hire, cost of hire and cost of repair considered excessive.

However: Opportunity to resist credit hire as Scene of Accident Information Form exchanged.

Personal Injury

Broker also recommends a solicitor to pursue a Personal Injury (PI) claim even though Third Party unsure about claiming. Solicitor then quick to act. Solicitor maximises the claim potential and instructs regularly used orthopaedic surgeon.

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COSTS INVOLVED AND OUR COMMENTS:

Cost considerably higher BUT some success on cost reduction

Repairs: £3,250 + VAT

Duration: 18 working days. Allegation by CHO of delay in provision of replacement parts. (Common occurrence!)

Replacement Vehicle: CHO submits claim for 23 days at £232 per day + VAT for BMW. Total £5,336 + VAT BUT in view of the precedent of TNT – v – Steadman we successfully reject the credit hire claim. Cost: NIL

Personal Injury: £2850. Claim for whiplash (18-month recovery)

Cost of representation: £2250 + VAT Solicitors costs

Total: £8,350 + VAT = A reluctant 2nd best

Almost a 300% increase on Scenario 1 above for same incident!

 

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SCENARIO 3 – NO REAL RESISTANCE (THE BAD)

Same incident BUT incident not reported to Insurer for 15 days and Scene of Accident Information Form NOT completed by driver and provided to Third Party.

Therefore, Third Party not provided with ANY advice on mitigation of loss, direction on alternative vehicle hire (no answer on liability).

Representation

Too late for Insurer to act proactively.

Third Party obtains representation through broker with Credit Hire Organisation (CHO). CHO acts quickly and provides 1st advice of claim to Insurer on day 2.

Credit Hire / Repair

Claims presented for credit hire and credit repair. As Third Party proved their innocence the credit repair and credit hire processes start immediately. Period of hire, cost of hire and cost of repair considered excessive.

NO opportunity to resist credit hire or credit repair as Scene of Accident Information Form NOT exchanged at scene of accident.

Personal Injury

Broker also recommends a solicitor to pursue a Personal Injury (PI) claim even though Third Party unsure about claiming. Solicitor then quick to act. Solicitor maximises the claim potential and instructs regularly used orthopaedic surgeon.

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COSTS INVOLVED AND OUR COMMENTS:

Cost much higher and NO success on Third Party claims cost reduction

Repairs: £3,250 + VAT

Duration: 18 working days. Allegation by CHO of delay in provision of replacement parts (a common occurrence!)

Replacement Vehicle: CHO submits claim for 23 days at £232 per day + VAT for BMW

Total £5,336 + VAT and NO opportunity to resist credit hire as presented in accordance with GTA rules and NO opportunity to make reference to the precedent of TNT – v – Steadman

Cannot successfully reject the credit hire claim. Cost : £5336 + VAT

Personal Injury: £2850. Claim for whiplash (18 month recovery)

Cost of representation: £2250 + VAT Solicitors costs

Total: £13,686 + VAT = A poor 3rd

A 480% increase on Scenario 1 above for same incident!

 

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SCENARIO 4 – DISASTER! (THE UGLY)

Same incident BUT incident not reported to Insurer for 25 days and Scene of Accident Information Form NOT completed by driver and provided to Third Party. Also, insured driver attempts to deny blame in the full knowledge that he IS to blame which comes out in the investigation and evidence compiling process.

Therefore, Third Party not provided with ANY advice on mitigation of loss or any direction on alternative vehicle hire. In addition, it takes 3 months to fully investigate and determine liability and all the time the credit hire clock is ticking and the Third Party is under no pressure to return the vehicle as there is no cost implication.

Representation

Too late for Insurer to act proactively. Third Party obtains representation through broker and Credit Hire Organisation (CHO) acts quickly and provides 1st advice of claim on day 2.

Credit Hire / Repair

Claims presented for credit hire and credit repair. As Third Party proved innocence the repair and hire processes start immediately. Period of hire, cost of hire and cost of repair considered excessive.

NO opportunity to resist credit hire as Scene of Accident Information Form NOT exchanged AND period of hire extensive due to liability investigations.

Personal Injury

Broker also recommends a solicitor to pursue a Personal Injury (PI) claim even though Third Party unsure about claiming. Solicitor is quick to act. Solicitor maximises the claim potential and instructs regularly used orthopaedic surgeon.

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COSTS INVOLVED AND OUR COMMENTS:

Cost VERY much higher, NO success on Third Party claims cost reduction AND period of hire out of all proportion

Repairs: £3,250 + VAT

Duration: 90 working days in view of policyholder’s liability dispute which turned out to be unfounded but took 3 months to investigate to establish the evidence

Replacement Vehicle: CHO submits claim for 90 days at £232.00 per day + VAT for BMW as liability investigations necessary. NO opportunity to resist extreme credit hire as presented in accordance with GTA rules and NO opportunity to make reference to the precedent of TNT – v – Steadman and cannot reject the credit hire claim. Cost: £20,880 + VAT

Personal Injury: £2850 claim for whiplash (18 month recovery)

Cost of representation: £2250 + VAT Solicitors costs

Total: £29,230 + VAT = An awful result!

A 1,025 % increase on Scenario 1 above for incident!

 

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WE ARE HERE TO HELP

The longer your taxi is off the road, the longer you are out of business. If you need to make a claim, you want to be confident that experienced professionals are handling it as quickly and thoroughly as possible, helping to minimise costs where possible.

Find out more about our multi-award-winning claims management service here.

DON’T GET STUCK OUT IN THE COLD

At any time, snow, sleet, and ice can make an appearance throughout Britain. The harsh winter weather can bring about hazards for your cab and your business as a whole. Knowing what to avoid and what precautions to take will help you save time and money, and ultimately protect yourself, your cab, and your passengers. Below our experts have outlined some useful tips to keep your cab on the road this winter.

Check the weather forecast and any road closure

Before heading out, check the weather and plan your route accordingly. Various mobile apps such as the MET office, Waze, and Google Maps can assist you with this and can notify you of real-time information about changes in both weather and road closures.

Check your vehicle

You should already be carrying out regular maintenance with your cab, but this is especially important in the winter months.

1) Tyres: the health of your tyres is vital in keeping safe on the road. A deep thread minimises the risk of skidding and it should be at least 3mm deep. This can be checked by inserting a 20p coin into the main thread grooves of a tyre. If the coin’s outer band can be seen after the insertion, contact your mechanic immediately. Threads that are under 1.6mm are illegal and driving with them can get you reprimanded with three penalty points and £2,500 fine per tyre.

2) Engine: perform your standard checks by checking your oil. Listen to any unusual sounds or leaks and get this check by a professional as soon as possible.

3) Pack a winter driving kit: we recommend keeping an emergency kit in your boot containing the following items:

• High visible clothing for you and your passenger
• A warm blanket and heat packs
• Portable charger
• Snow shovel

Slow down

When you drive in the snow, your stopping distance is ten times longer than normal. Driving in rainy conditions doubles this. Slowing down will help increase your ability to respond to any hazards in front of you, and you should be particularly aware of black ice, which can make the road extremely dangerous due to its transparent nature.

In the instance your vehicle starts to skid, do not panic and avoid braking; instead, take your foot off the accelerator and hold the steering wheel straight. If your back wheels begin to slide, turn the wheel very slightly in the same direction. Driving in a higher gear, will increase your control of your vehicle and also minimises the chance of wheelspins.

Stay back

Leave plenty of room between your cab and the vehicle in front to minimise collision. This also increases your visibility to other drivers.

Protecting your passengers

As well as taking driving precautions and ensuring your cab is in proper condition, the environment inside your cab can have a significant impact on your ability to drive.

Communicate to your customers that you may need to concentrate fully on the journey and reassure them that they are in safe hands. Try and answer any questions that they may have before the trip and set the expectation that the journey will be slower than usual. Additionally, let them know that you may be forced to use alternative routes.

While precautions can be taken to minimise the risk of accidents, risk can never be fully eradicated. The winter months can heighten the unpredictability of the weather and roads and therefore it is vital to protect yourself and your cab with specialist taxi insurance. With over 40 years of experience in the Licensed London Taxi Trade, we have expert knowledge in providing the protection you need to help keep your cab on the road.

In the event of an accident, ensure that you and your passengers are safe. Collect any evidence immediately such as photos of any damages to your vehicle and contact your insurance broker as soon as you can.

We are here to help

For more information on protecting your taxi, click here.