Item 9 - Acceptable Vehicle Insurance Report
West Dunbartonshire Council · 16 April 2025
Back to Licensing Committee — 16 April 2025 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer – Regulatory & Regeneration Licensing Committee – 16 April 2025 Subject: Proposed change to taxi/private Hire car licence condition 1. Purpose 1.1 To consider an amendment to an existing condition applicable to both taxis and private hire car licences relating to vehicle insurance which would clarify that the day-to-day manager can be the holder of the insurance policy. 2. Recommendations 2.1 It is recommended that the change to the relevant condition applicable to both taxis and private hire car licences be considered and amended. 3. Background 3.1 The issue of vehicle insurance relating to taxis and private hire cars is set out below in paragraphs 3.2, 3.3, 3.4 and 3.5. The reference to the Road Traffic Act 1972 in paragraph 3.4 essentially states that vehicles can only be driven when properly insured. 3.2 Condition No. 4 relating to the holder of a taxi licence states:- The holder of a Taxi Licence who owns the Taxi to which the Licence relates shall hold in their own name the requisite vehicle registration document (or shall otherwise provide documentary evidence confirming ownership of the Taxi and evidence sufficient to the satisfaction of the Licensing Authority of the owner’s consent to the vehicle presented for registration being used as a Taxi) and the Certificate of Insurance in relation to the Taxi required by statute. If more than one name appears on the Taxi Licence, both the Vehicle Registration document and the Certificate of Insurance shall be in the name of at least one of those names. 3.3 Similarly, condition No. 4 relating to the holder of a private hire car licence states:- The holder of a Private Hire Car Licence who owns the Private Hire Car to which the Licence relates shall hold in his own name the requisite vehicle registration document (or shall otherwise provide documentary evidence confirming ownership of the Private Hire Car and evidence sufficient to the satisfaction of the Licensing Authority of the owner’s consent to the vehicle presented for registration being used as a Private Hire Car) and the Certificate of Insurance in relation to the Private Hire Car required by statute. If more than one name appears on the Private Hire Car Licence the Vehicle Registration document and
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the Certificate of Insurance shall be in the name of at least one of those names. 3.4 Section 10(2) of the Civic Government (Scotland) Act 1982 (the 1982 Act) states:- A licensing authority shall not grant or renew a taxi licence or private hire car licence unless they are satisfied that the vehicle to which the licence is to relate is suitable in type, size and design for use as a taxi or private hire car, as the case may be, and is safe for that use, and that there is in force in relation to the vehicle such a policy of insurance or such security as complies with Part VI of the Road Traffic Act 1972. 3.5 Paragraph 5(8) of Schedule 1 of the 1982 Act states:- Where a licensing authority grant a licence in respect of which an employee or agent has been named under paragraph 1(2)(b) or (c)(iv) above, the licence shall be granted jointly in the names of the applicant and of the employee or agent, and in such a case any reference in this Schedule or in Part I or II of this Act to the holder of a licence includes a reference to one or both of those persons, as the case may require. 4. Main Issues 4.1 It is established that a taxi or private hire car must be insured for hire or reward and be comprehensive rather than third party fire and theft. 4.2 The existing condition requires that the licence holder must hold the insurance policy in their own name. Paragraph 5(8) of Schedule 1 of the 1982 Act however states where an employee or agent are named as such on the application form, then the licence is granted jointly in the applicant’s name and the employee or agent. 4.3 Several taxi and private hire car licences in both the Clydebank zone and the Dumbarton and Vale of Leven zone are issued in the licence holders name and include the name of the employee or agent as day-to-day manager. In effect, as the joint holder of the licence, the certificate of insurance for the vehicle could be held in the name of the day-to-day manager and not the licence holder’s name. The consequence of this change may have a beneficial effect on a number of existing licence holders as it may reduce the cost of their insurance where the day-to-day manager is able to obtain a more cost-effective insurance policy in comparison to the licence holder themselves. Given the aforementioned terms of paragraph 5(8) of Schedule 1 of the 1982 Act, this change simply reflects the statutory position, i.e. the day-to-day manager is a joint licence holder. 4.4 Officers of the Licensing Section have reviewed practice in other neighbouring licensing authorities and note that authorities such as Glasgow City Council, Renfrewshire Council and East Dunbartonshire Council, allow the vehicle insurance to be in the name of the day-to-day manager.
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4.5 It is therefore proposed that the wording of both the taxi and private hire car conditions be amended as follows:- The holder of a Taxi/Private Hire Car Licence who owns the Taxi/Private Hire Car to which the Licence relates shall hold in their own name the requisite vehicle registration document (or shall otherwise provide documentary evidence confirming ownership of the Taxi/Private Hire Car and evidence sufficient to the satisfaction of the Licensing Authority of the owner’s consent to the vehicle presented for registration being used as a Taxi/Private Hire Car). The Certificate of Insurance in relation to the Taxi/Private Hire Car must be in the name of the holder of the licence holder or in the name of the employee or agent where they are named on the licence. 5. People Implications 5.1 There are no personnel issues. 6. Financial Implications 6.1 There are no financial implications 7. Risk Analysis 7.1 There is no increased risk to the Council associated with the contents of this report. 8. Equalities Impact Assessment (EIA) 8.1 No impact assessment is required because this report does not involve any change to policies or services or financial decisions. 9. Consultation 9.1 No consultation was carried out. 10. Strategic Assessment 10.1 In terms of the Council's Strategic Priorities, the purpose of licensing is to ensure our Communities are Resilient and Thriving. Chief Officer – Regulatory & Regeneration Date 27 March 2025 Person to Contact: Robert Mackie, Senior Officer (Licensing Section), Licensing Team,
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Municipal Buildings, College Street, Dumbarton, G82 1NR. Tel. No. (Direct line) 01389 738742. robert.mackie@west-dunbarton.gov.uk Appendices: N/A. Background Papers: 1. Standard conditions for the holder of a taxi or private hire car licence. Wards affected: All.