PUBLIC TESTIMONY
Testimony by Peter Mazer, General Counsel of Metropolitan Taxicab Board of Trade
2:03:47
ยท
3 min
Peter Mazer, representing the Metropolitan Taxicab Board of Trade, addressed two main issues affecting the NYC medallion taxi industry: high insurance costs and funding for accessible vehicles. He urged the passage of Intro 1050 to lower mandatory minimum insurance limits and requested the city council to find funding to restore programs supporting accessible taxis.
- Highlighted the problem of insurance fraud in the for-hire vehicle industry, which has led to high insurance premiums
- Discussed the high cost of accessible vehicles (up to $90,000 each) and the reduction in TLC funding for accessibility programs
- Emphasized the importance of the taxi industry as part of NYC's mass transportation system, noting they receive no government subsidies
Peter Mazer
2:03:47
Good morning, members of the committee.
2:03:49
My name is Peter Mazer, and I am general counsel to the Metropolitan Taxi Care Board of Trade, a seventy two year old trade association representing owners and operators of licensed medallion taxicabs.
2:04:00
Our full service driver centers provided representation of drivers leasing cabs in more than 12,000 adjudications.
2:04:07
The New York City medallion industry is an integral part of the city's mass transportation system.
2:04:13
We service areas not reachable by bus and subway, yet we receive not a penny in government subsidy.
2:04:19
In fact, each passenger ride riding a cab in the central business district of Manhattan already pays $3.75 of its fare to the MTA.
2:04:29
That's more than the cost of a bus and subway ride.
2:04:32
And while our ridership has been down in the industry, expenses continue to increase.
2:04:37
And today, I want to address two areas where the city council can be of help.
2:04:42
Cabs and other vehicles for for hire must have maintain higher liability and no fault insurance limits than vehicles other vehicles licensed in New York state.
2:04:53
This is because of TLC regulations, which you've heard about already.
2:04:57
However, these higher limits of insurance have been a magnet for fraud on the part of unscrupulous claimants, their medical prac providers, and unethical attorneys.
2:05:07
The fraud is so rampant that it has jeopardized the stability of the for hire insurance industry.
2:05:12
The high cost of insurance premiums has been devastating to the taxi industry.
2:05:17
Recently, both Uber and a major insurance carrier in the for hire industry have filed separate lawsuits in federal court against some of these perpetrators.
2:05:26
I these suits highlight the types of fraudulent claim activity burdening for hire vehicle insurance carriers and the scope of the problem, lowering mandatory minimum insurance limits to the, to those applicable to other vehicles, including for hire vehicles elsewhere in the state, would discourage some of these fraudulent practices.
2:05:48
Intro ten fifty, under consideration today, would help achieve this result by prohibiting the the TLC from mandating higher limits.
2:05:56
Persons injured in accidents would still be protected as the TLC and the state both strictly enforce mandate insurance coverage.
2:06:05
We, excuse me, we urge the passage of intro ten fifty.
2:06:09
If I can just Can I just ask
Selvena N. Brooks-Powers
2:06:10
that you wrap up, please?
Peter Mazer
2:06:11
Yes.
2:06:11
If I could just have one more minute just to address the the the concern that we have with the high cost of, four of of accessible vehicles, which are up to $90,000 each, and the fact that the Taxi and Limousine Commission will be, has provided some funding but is eliminating a lot a large amount of the funding that's available, including subsidies to drivers, continuing payments to owners, and debited, money that was available to, drivers who transport passengers with accessibilities and the elimination of the accessible dispatch program, which members of the accessible committee, community have already talked about.
2:06:51
We urge the city council to find some funding that we could restore some of these funds.
Selvena N. Brooks-Powers
2:06:55
Thank you.
Peter Mazer
2:06:55
Thank you.