The Association of Taxi Drivers – Plovdiv and the “Union Taxi” Association – Sofia call on the President, the Prime Minister, the Minister of Transport and Communications and the leaders of the parties and coalitions in the 51st National Assembly to take a stand on the problem in the industry with the increase in the price of Civil Insurance responsibility”. This became known from an open letter, which was also distributed to the media.
In it, they note that the insurance companies in our country in October of this year unexpectedly raised the insurance premium of the mandatory “Civil Liability” insurance for taxi cars between 300% and 1000%.
Raising this insurance to such monstrous proportions is absolutely disproportionate to the revenue generated in the taxi industry, the letter states. The associations comment that even if the prices of the services are increased, the profit will not be able to cover the incurred costs, in which case a large part of the small companies will be brought to bankruptcy.
If measures are not taken within 15 days to curb this arbitrariness on the part of the insurance companies, we will organize a national protest on November 20 in all major cities of the country, for which we have the assurance of all taxi organizations, carriers and local drivers , the letter states. According to data from the organizations, about 35,000 people are employed in the sector, which means that more than 100,000 people are fed through it.
We hope that the huge problem that has arisen will be solved by political consensus and will not be used for political PR by individual political forces, the open letter also says.
Hundreds of taxi drivers from several cities in the country have already protested in Plovdiv on October 31 because of the increase in the price of the mandatory “Civil Liability” insurance.
Time.news Interview: The Future of Taxi Operations in Bulgaria Amid Rising Insurance Costs
Editor: Good day, and welcome to Time.news. Today, we have a special guest, Dr. Elena Petrova, a transportation policy expert, who will help us understand the implications of the recent insurance price hikes impacting taxi drivers in Bulgaria. Dr. Petrova, thank you for joining us.
Dr. Petrova: Thank you for having me. It’s a pleasure to discuss such an important issue.
Editor: Let’s dive in. Recently, the Association of Taxi Drivers – Plovdiv and the ”Union Taxi” Association – Sofia pressed for governmental intervention regarding rising civil insurance premiums. What can you tell us about the significance of this situation for the taxi industry?
Dr. Petrova: This situation is quite crucial. The taxi industry is already operating on narrow margins, and an unexpected hike in insurance premiums can significantly affect the livelihoods of drivers. The associations’ call to action is a response to a broader issue concerning the sustainability of taxi services in urban areas of Bulgaria.
Editor: Indeed, sustainable operations are vital. In their open letter, they addressed not just the President, but key figures in the government. Why do you think they chose to escalate their concerns to such high levels?
Dr. Petrova: This escalation indicates the seriousness of the situation. By involving top government officials, they signal that this is not merely a private issue but one that could affect consumers, public transport reliability, and the overall transportation ecosystem in cities. They are essentially asking these leaders to prioritize regulatory measures that can help stabilize the industry.
Editor: The letter mentions that the insurance companies increased premiums in October unexpectedly. What factors could lead to such sudden increases in costs?
Dr. Petrova: Insurance rates can fluctuate due to various factors, including claims history, risk assessments of drivers and their vehicles, and overall market conditions. If insurance companies experienced a higher volume of claims or if they assessed that driving conditions have worsened, they might raise premiums accordingly. However, these changes should ideally be reported and explained to the stakeholders to maintain transparency and trust.
Editor: That transparency is essential. If this continues, what potential long-term impacts could we see on the taxi industry and its drivers?
Dr. Petrova: If these insurance costs remain high, we could see several outcomes: an increase in fares, which could deter customers, a potential reduction in the number of operating taxis as some drivers might choose to leave the profession, or even a shift toward unregulated services. Additionally, we might witness an increase in ride-sharing platforms gaining more market share, which could destabilize traditional taxi operations.
Editor: Interesting points. What steps do you think the government should take to address these challenges effectively?
Dr. Petrova: First, a thorough review of the insurance market is needed to investigate the reasons behind the abrupt price hikes. Additionally, the government could consider implementing regulations on insurance rates specifically for commercial transport to protect drivers from sudden financial strain. Creating a support system, such as grants or subsidies for small taxi operators, could also be beneficial.
Editor: Those are practical solutions. Lastly, what can taxi drivers do in the meantime to cope with these changes?
Dr. Petrova: Drivers should stay informed about their rights and advocate collectively as associations are doing. They can also explore insurance options—some insurers might offer competitive rates or packages better suited for their operational needs. Joining together for negotiations with insurance companies might help in securing better terms.
Editor: Thank you, Dr. Petrova, for sharing your insights on this pressing issue. It’s clear that the future of the taxi industry in Bulgaria is at a crossroads, and your expertise sheds much-needed light on the path forward.
Dr. Petrova: Thank you for having me. It’s crucial that we continue this dialogue to ensure a sustainable future for transport services.
Editor: And to our readers, stay tuned as we continue to cover developments on this important issue. Your support for local taxi drivers and their concerns is vital as the industry navigates these challenges.