Local taxi drivers in Saskatoon, SK are asking their insurer, Saskatchewan Government Insurance (SGI), to reduce their insurance costs in light of the COVID-19 pandemic affecting their business.
United Steelworkers Local 2014, a union representing Saskatoon-based cab drivers, sent a letter to SGI minister Joe Hargrave earlier this month asking for a temporary 50% reduction in rates for taxis, CBC News reported.
“Taxis provide a public service, and for some of the most vulnerable in our communities, older people, and people with disabilities, they rely on taxis to go get groceries, attend medical appointments among other activities,” the letter read.
According to USW 2014 president Malik Diaz, cab drivers have experienced a “drastic drop” in fares. Many cab drivers, the president explained in the letter, were not making enough income to cover the basic costs of operating their vehicle.
“Supporting taxi drivers is supporting our community,” the union president said in the letter.
Diaz told CBC News that he has yet to hear back from SGI regarding a possible reduction in rates.
According to information from SGI, insurance rates for taxis in Saskatoon are typically around $4,437 annually, or about $370 a month. The insurer has also indicated that taxis are eligible for a discounted rate based on past claims over the last five years – they can get up to 15% off their rates.
CBC News spoke to SGI regarding the issue.
“SGI is well aware that many of its customers, whether taxi drivers or otherwise, will be facing financial challenges as a result of the COVID-19 pandemic, and staff at SGI’s Customer Service Centre are happy to work with customers to find solutions,” a statement from the insurer said.
The insurer added that it will work with customers who are unable to make monthly payments on their vehicle registrations, to adjust payment plans. SGI also advised that for those drivers planning to park their taxi for a period of time, they can cancel their registration on the vehicle so that they’re not paying a full premium. Taxi drivers have also been advised to change the class their vehicle is registered in, allowing them to pay lower rates.
