Santa Cruz de Tenerife 31 Jan (Europa Press) –
The Ministry of Public Works, Housing and Mobility of the Canary Islands Government, via the General Directorate of Transportation and Mobility, has conveyed to the Ministry of Transportation and Sustainable Mobility, through a letter, its apprehension regarding “the drastic surge” in Auto-taxi insurance rates across the islands, which jeopardises “the viability of the sector in the archipelago.”
In a statement, the general director of Transportation and Mobility of the Regional Government noted that sector representatives maintain that “some premiums have witnessed increases of up to 100% compared to the previous year,” an issue that, he cautioned, “is creating severe economic challenges for taxi companies in the Canary Islands.”
“This circumstance, which poses a risk to the normal operation of the service, is exacerbated by certain insurers’ refusal to provide coverage for these types of vehicles, a situation that significantly jeopardises the provision of this essential mobility service in the islands,” Fernández emphasised.
He elucidated that “the root of this predicament stems from the revision of competencies enacted on September 4, 2009, when the Insurance Compensation Consortium ceased to cover risks not taken on by insurance entities in the mandatory insurance for passengers.”
Since then, he remarked, the costs associated with self-taxi insurance have gradually escalated, now reaching levels “that many operators find unmanageable, posing a risk of collapse for the sector.”
The General Director of Transport and Mobility of the Regional Government has stressed the necessity of “ensuring greater transparency” in determining insurance prices, to prevent practices that “directly harm the sector” and, indirectly, “impact the entire populace.”
Fernández underscored the “commitment” of the Canary Islands government to the taxi sector – “a crucial element of mobility in the islands” – while recalling the meetings that have been conducted with their representatives to assess the situation and seek solutions that secure “its stability and future.”
“We have expressed our concerns to the Ministry via a letter in which we request a response to the sector’s needs, in addition to presenting this issue at the recent meeting of general directors held this week in the Ministry. Our objective is to keep progressing within a regulatory framework that safeguards the taxi sector, ensuring its role in the mobility landscape of the Canary Islands,” he concluded.
