Taxi Driver Online

Hi Chaps,
I am currently finding it hard to get an accurate reply to my query.. basically I am receiving different answers from different people.
Question is.... you have one car which is fully insured and being used as a PH car.... can this car be used for a second business if additional insurance is taken out for a second business?
I am having mixed opinions on this.
Thanks for any comments received.

It depends what the second business is

for instance if that second business was parcels delivery or takeaway delivery then you would need seperate insurance for the delivery side BUT check your PH policy carefully for any clauses that specifically say the vehicle cannot be used for such. I know of drivers that do deliveries as well as passengers but you have to be careful with the insurance and make sure they are OK with it first.

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lack of modern legislation is the iceberg sinking the titanic of the transport sector

I would imagine so.

But the best answer you will get will be from the insurance company/broker.

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IDFIMH

it amazes me how some people would rather get 100 different answers rather than going directly to the one place that can give them the correct answer.

I did go direct to the right people (council) to ask and was told that the car would just have to be used for PH only BUT found out later that some insurance companies say not. Anyway, as I do not wish to go against the rules set by the council I have decided against the PH for now as its going to cost way too much money as I will need to buy and run a second vehicle with two insurances to pay for.
Its very disappointing indeed.... and even more annoying as its my car!

Your council are clueless if they say your vehicle can only be used to carry people for payment.

If you want to deliver KFC or sacks of coal you can.

What I would have asked them was not if I can, but please show me where in the rules it’s says I can’t.

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IDFIMH

I don't know who sets these rules and to be honest I cannot see why on earth my car cannot be used for my other business IF i am willing to add insurance cover. I was just told it has to be a PH vehicle only and used just for non buisness stuff (social and domestic pleasure). Thanks fior your message though , I do see your reasoning. I am just really disappointed.

Other than the absolute normal scenario, different licensing authorities and different insurers are likely to take different approaches to stuff like this.

For example, some insurers will allow food deliveries under a standard taxi or private hire policy, while others won't, or will require a totally different policy, and/or an add-on. After all, it's up to insurers what they'll insure, and how they charge for it.

And it doesn't surprise me that some licensing authorities will say that a taxi or private hire vehicle can't be used for other business purposes. But I'd guess that in reality it's none of their business, pardon the pun.

But if some councils don't allow alternative business uses for plated vehicles, then I'd guess they're acting outside their powers under the legislation. So that might be challengeable in court, but obviously doing something like that is a challenge in itself, so people like yourself will just accept what the council says, and they'll never be taken on.

I'd have thought that there might have been legal challenges regarding that sort of stuff in the past, though, and thus decided case law that would either confirm your council's case, or enable you to take them on maybe without going to the length of a formal legal challenge.

But if Sussex isn't aware of any case law, then if any cases have been decided on this then presumably they aren't too high profile

Standard wording from my HC insurance certificate -

Use for social domestic and pleasure purposes and as a licensed Hackney Carriage for the carriage of passengers, the delivery of food, non-toxic and non-hazardous goods and prescription drugs for hire and reward.

I'd agree the council only has oversight of the vehicle as a PHC. Provided insurance is in place, I can't see other use of the vehicle is anything to do with them.

What is the other business?

Thanks everyone for your help and support on here, I do appreciate it.
I got rid of my van and only bought an estate car because I wanted to do PH and use the car to do my other business. I couldn't believe it when i was told the car can only be used for PH!
The idea was to do PH self employed.
Two vehicles /two lots of very expensive insurance is out of question right now so I will just forget the PH and see how things go...
Best wishes to you all

I would say that the right people would have been your insurance company. As Sussex says your Council are clueless.

I’ve mentioned this before on TDO, and it’s still worth folks remembering or pointing out to their respective councils.

1. Councils can only do stuff where there is a specific law or regulation that allows them to do it.

2. I, you, we can do what we dam well like unless there is a specific law or regulation that says we can’t.

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IDFIMH

Possible pitfall, though, is that you may be able to get an insurer to cover you, but if the council says you can't do something, then presumably the insurance is invalid if you're not adhering to what the council says.

What the council may say you can't do could be challenged, but that's not necessarily and easy process. In the meantime, though, if you don't adhere to what the council says, then your insurance position is dodgy.

Thanks Stuart, I didn't see it from that angle so I am glad you mentioned it.
If I see this through and do go for PH in near future, I suppose I'll finish up having to shell out and follow the rules. It wouldn't take much for an insurance company not to pay out!

The 'elephant in the room' is how will the council know what you are doing, when you are doing it.

As long as your insurance company is aware, then just carry on and don't inform the council.

That's basically what 99.99% of the trade do, or would do.

And parts of me think that's even an underestimate.

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IDFIMH