Over 10,000 taxis could see insurance policies terminated, affecting services: veteran

Hong Kong's taxi service is at stake as over 10,000 taxis could see their insurance policies terminated in the coming week, a veteran warned.

Cheng Hak-wo, managing director of Chungshing Taxi, said some of his company's drivers will have to stop working tomorrow (Wednesday) as their policies are canceled.  

Target Insurance - an insurer holding over 60 percent of the taxi insurance segment – had said it could terminate the policies due to commercial reasons.

The insurer had earlier said it may have to stop renewals of existing taxi insurance policies to protect its profitability, after an involuntary suspension of its foreign currency investments. It has yet to confirm the cancelations. 

Speaking on a radio program on Tuesday, Cheng said Target had informed some of its clients it will cancel their taxi insurance policies after a 7-day notification period.

Cheng said the insurer will inform its remaining clients shortly. Around 75 percent of Target's existing taxi insurance policies will be canceled, he said. 

He estimated that over 10,000 taxis will see their insurance policy terminated in the coming week, with some no longer able to run starting Wednesday without the insurance.

Meanwhile, the Insurance Authority said it has liaised with the Hong Kong Federation of Insurers and other insurance companies to formulate plans to allow affected taxi owners to be insured by other firms.

It also said Target has agreed to provide affected policyholders a 30-day insurance policy to ensure relevant taxis to be insured before making their transition to other firms.