Newfoundland cab operator claims insurance hikes compromising business

March 13th, 2017  |  News

Jiffy cab operator Doug McCarthy used the platform of The St. John's Morning Show to air his grievances against the Newfoundland and Labrador government, which he believes has driven up insurance premiums to the point where it has compromised the ability of those in his industry to do business.

According to McCarthy, his insurance has jumped 234 per cent over the last four years. This March alone, he experienced a 25.6 per cent increase.

Newfoundland's taxi management is fully overseen by the Facility Association, which is an unincorporated non-profit made up of automobile insurers. Because it has a monopoly over the province's cab drivers, it is able to ramp up prices to certain levels without being challenged.

McCarthy's claim that the government is responsible for the inordinate pricing is based on the fact that one branch of the government serves as a sort of watchdog for the organization. The Newfoundland Public Utilities Board could theoretically intervene and put a stop to the hikes, but McCarthy argues that it has been idle and complicit in the issue. Furthermore, he notes that the government created the problem in the first place as well, by playing an instrumental role in the establishment of the Facility.

Taxis make up a meaningful part of the St. John's economy. For that city alone, there are at least 45 registered cab companies offering service (though not all are necessarily based there).