Inquiry Begins Into Cab Firm’s Insurance

Los Angeles city taxi regulators have begun an inquiry to determine if the San Fernando Valley’s only cab company is adequately insured, a top Department of Transportation official said Tuesday.

Tom Conner, the department’s assistant chief, said Tuesday that it has “not been established to our satisfaction” that Valley Cab Co. has set aside $350,000 in a trust account to cover insurance claims against it as required by the city’s self-insurance regulations for taxi franchise holders.

Valley Cab has failed to provide proof that a bank account holding more than $350,000 for insurance is fully controlled by the company and unencumbered, city officials said. The account is held in a name other than that of Valley Cab.

The Department of Transportation executive refused to elaborate, saying that providing additional details could infringe on the company’s proprietary rights. Valley Cab officials did not return phone calls Tuesday.

Absent adequate proof of self-insurance, the department staff would require Valley Cab to obtain a more costly commercial insurance policy, Conner said.

Questions about the insurance maintained by Valley Cab, the monopoly firm, have also been vigorously pressed by a Burbank-based cab firm that is seeking to win a second franchise for itself in the Valley, city officials also said.

Valley Cab is locked in a fight to retain its monopoly franchise north of Mulholland Drive with Babaeian Transportation Co., which has hired the influential law firm of former Councilman Art Snyder to lobby for its cause at City Hall.