Credit Hire Fraud – taxi claims

There can be no doubt that claims involving taxi drivers are on the increase. Our instructions show a year on year rise in such claims, which can involve the less salubrious end of the CHO market and, as such, present their own difficulties and challenges when investigating.

How to investigate:

Previous accidents

Look at the claimant’s previous accidents. What were the circumstances of previous accidents and who, if anyone, provided hire? Look for evidence of similar fact accidents and the use/existence of vehicles other than those that have been declared.

Ownership of TPV / cause of action

Are you satisfied that the claimant is the owner of the vehicle involved in the index accident? Undertake a DVLA check and request the V5 ownership document. If the claimant is not the registered keeper of the vehicle you need to check their entitlement to drive the vehicle. Was the claimant and/or driver insured to drive the vehicle at the time of the index accident? Was the level of cover sufficient for hire and reward? Is there a potential ex-turpi argument to be advanced?

Hire vehicle

Check ownership of the vehicle(s) hired and, where necessary, request sight of the cross-hire agreement. This can lead to a strong argument upon the applicable base rate of hire (see Abdi v Fletcher). Ensure that the hire vehicle(s) were correctly insured during the period of hire.

Taxi licensing

The following documentation should be requested:

• Claimant’s licence covering the date of the index accident.
• Licence for the TPV covering the date of the index accident.
• Licence for the hire vehicle(s) covering the period of hire.
• Suspension notice in respect of the TPV.

Raise queries in the event that the licence for the hire vehicle(s) is not registered to the CHO.

Was the index accident reported?

Pursuant to Local Government (Miscellaneous Provisions) Act 1976, it is an offence not to report an accident. This is only a local authority offence but will assist with credibility arguments. In the event the TPV has been repaired, request sight of the re-inspection report.

Need

• If employed, did the claimant have access to a fleet of vehicles?
• Did the claimant have access to any other vehicles which could have been plated?

Impecuniosity

• Request sight of financial documentation to include profit and loss accounts as well as tax returns.
• When considering financial disclosure look for insurance, petrol and licensing payments.

General points

• Proportionality of the cost of hiring c.f the claimant’s earnings during the period of hire.

Take care, however, as this is not an argument that generally finds favour with the court.

• Consider cash-in-lieu payments
• What has the claimant done with a PAV or payment for repairs?
• Check whether total loss vehicles have in fact been repaired.
• Consider mileage on the TPV and general condition of the vehicle – was it fit for purpose?

A lot of these enquiries will lean heavily on the Local Authority which dealt with the claimant’s private hire licence. One should also seek to link the credit hire company involved to other claims as frequently it is the CHO that is the “enabler” in claims involving taxi drivers.