Saudi- Law to curb taxis from roaming around town

(MENAFN- Arab News) Government agencies have revealed that they intend to tighten the rules and punishments for taxi drivers who violate regulations that stipulate that they cannot drive around streets searching for customers in neighborhoods and on roads.
Indeed the perpetual roaming of taxis cause many traffic jams and accidents due to their frequent and sudden stopping especially in major cities with many drivers often breaking traffic laws to take in customers.
Several insurance companies even refuse to insure taxis as they represent a high risk and threaten the company financially due to their frequent involvement in accidents.
Emad Wafiq Al-Husseini an insurance expert investing in this sector said: "Preventing roaming taxis would reduce the insurance risk because it would decrease the likelihood of accidents and premiums would be reduced as a result. Yet the positive effects of this decision would not be apparent quickly as the insurance companies need at least six months to assess the situation and decide about the return of taxis to their insurance systems.'
Mansour Al-Shakra spokesman for the Eastern Province Traffic Department agreed on the benefits of the decision saying "Upon the implementation of this decision there would be many positive impacts on traffic and accident rate."
Saud Al-Nufaie chairman of the land transportation committee in the Riyadh Chamber of Commerce and Industry confirmed that there is currently no prohibition on roaming taxis except in neighborhoods where there are already waiting sites allocated for taxis.
A recent regulation for taxis issued by the Ministry of Transport prevented drivers from roaming in the streets looking for customers subjecting violators to a fine of SR55000 on the first offense and cancellation of license in case the offense is repeated.