A national database of taxi and private-hire details could help take rogue drivers off the road and benefit everyone in the long run.
Proposed changes to taxi licensing regulations could see details for all taxi and PHV drivers and operators stored in one place, rather than being held by 263 different licensing authorities.
The national database could allow police, licensing authorities and insurers to instantly check whether a driver is licensed, has any restrictions on their badge, has the correct taxi insurance in place, and take any action necessary.
Safety drive
Enabling police and licensing officers to instantly determine whether a vehicle and its driver are operating correctly will make the industry safer and stop rogue drivers simply moving to a new area if they have had their licence suspended or revoked by another authority.
Following the Deregulation Act 2015, private-hire drivers have been able to work “out of area”, leading to taxi drivers complaining of unfair competition, as well as safety concerns about maintaining standards and enforcing licensing regulations.
Since 2023, all UK licensing authorities have been required to add details to a national database when a taxi or private-hire vehicle driver has had a licence refused, suspended or revoked because of safeguarding, road safety or equality discrimination concerns.
But this does not cover all risks they could pose.
Now the Department for Transport is looking to take this further as part of regulatory changes which would not only protect against rogue drivers but also benefit the rest of the trade.
One-stop
By storing driver and vehicle details in one place, police and licensing officials will immediately be able to take action against drivers who flout the rules and are a risk to others.
If access is also granted to insurance brokers or insurers, they will also be able to check driver and vehicle details at the quote stage, reducing administration time and cost, and allowing insurers to offer cheaper taxi insurance premiums to those who have earned them, as well as higher premiums for those with blemishes on their record who pose a higher risk.
By ensuring the correct premium is paid by every driver, the cost of fraud isn’t spread among all drivers.
It also benefits drivers who currently have to provide a copy of their badge and plate to be verified by the insurer when setting up or renewing a policy.
Currently, if drivers fail to provide the details of badges and plates within the required timeframe of a new policy or renewal, their taxi insurance can be cancelled, leaving them without cover and unable to work.
Having access to a national database reduces the administrative burden for insurers and insurance brokers, and these savings could be passed on to the customer in the form of lower premiums.
National standards
Industry regulations are currently maintained by each of the licensing authorities.
Having drivers’ details in one place would be a major step towards creating national oversight of the industry as the government looks to reduce the number of licensing authorities from the current 263 to 70 to improve efficiency and maintain consistent standards.
In order to achieve this, officials nationally need to be able to check that a driver has the correct licence and insurance in place, without any restrictions or suspensions, and that their vehicle is well maintained and safe to use as a taxi or PHV.
It would prevent rogue drivers from being able to hide under the cloak of the authority they are licensed by, which could be hundreds of miles away.
And by reducing the risk and fraud, it could mean lower taxi insurance premiums for those who have earned them, rather than having to share the cost of fraudulent claims.
