Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-04-10
Justice Group Asks
Stiff Taxi Insurance
Injured Held
Induced to
Accept Offers
By AL ALIBRANDO


Justice Association is urging
sitter insurance requirements to
protect injured taxicab pas
sengerS now being induced to
accept compromise settlements
paid off in installments.
A still unreleased congress
sional report completed last De-
cember and the District Public
Utilities Commission also have
called for higher insurance re-
quirements and elimination of a
provision which permits a large
taxlcab association to Ensure"
nearly 1900 cabs under single
SIS. 900 bond.
The congressional report, pre-
pared by William N. Mcleod, jr.,
House District Committee clerk.
states unequivocally that the
association is in such a poor
liability position" it attempts to
convince injured parties they are
better off with modest COM
promise settlements"
Warnings to Injured
The report, it is understood,
relates that lawyers for the as
ISOLATION warn injured persons
that unless they are willing to
accept a rather modest COM
promise settlement to be paid
on the installment basis. the
company would become bankrupt
and they would receive even
less"
Under District law, taxicab op-
orators must carry $5,000-S10, 900
liability insurance or protect the
riding public with a bond. All
taxi operators except the asso-
citation in question carry insur-
ance. The association has post
ed a $4,000 bond with the Dis.
trict of Columbia tax collector.
According to the Washington
Criminal Justice Association, this
bond covered 1852 cabs at the
end of 1856. The Public Util-
tiles Commission has declared
that the bond is wholly made
ouate." The PUG pointed out
that present legislation prohibits
the commission from requiring a
higher bond.
The commission is urging that
taxicab liability be made to con-
form with that required of other
drivers, namely $10.0o0-S20. 900
limits for personal injury.
Records subpeoned from the
association for the. Congressional
report show:
!. The association in 1855 paid
$107,404.33 in accident claims.
and s93.835.57 in the first six
months of 1856.
2. An admission by an associa-
ton attorney that "it was be.
cause of this cost that some of
the cases were settled on the in
stallment basis"
3. That the association now
faces SO suits totaling S1,755,O
District officials familiar with
the financial condition of the
association contend that it's
living from nd-to-mouth."
A breakdown of claims shows
that payments in 1856 included:
Contention of ID. c. Officials
Settlements ranging from
81 500 to $4,000 on which initial
payments ranged from $500 to
$4,000. with monthly payments
OF from $500 to $1,000.
/ District officials, particularly
members of the Public Utilities
Commission, have contended
that adequate insurance cover
age would better protect the
public than the bond arrange
ment. They also contend that
adequate coverage probably
would not cost independent driv-
erS who belong to the association
any more than they pay upder
the bond arrangement.
Independent drivers here pay
$3.50 per week for their insur-
ance, while drivers covered by
the bond pay $27.50 for associa-
ton membership. Part of this
money goes into q fund from
which damage claims are paid.
So far, demands for changes
in regulation of taxicabs here
have met with little response.
The Mcleod report was COM
pleted last December and 10000
copies now are locked up in
House District Committee quar-
tiers in the Old House Building.