The Malta Insurance Association yesterday asked the government to take the necessary action following a refusal by 100 red minibuses to renew their insurance cover.
Anton Felice, on behalf of the association, told The Times yesterday that only 30 of the 130 minibus owners whose cover had expired, had renewed their insurance.
He pointed out that the remaining 300 red minibuses were still regularly covered since their insurance had not yet expired.
"We are sending a list of the vehicles to the Roads Ministry. These vehicles are not only unlicensed but have no insurance cover for the accidents in which they may be involved," Dr Felice said.
The minibuses cooperative warned last week it would order a strike after 130 minibus licenses expired on August 1 and owners were told they had to pay 30 per cent more on their insurance premiums. Minibuses, along with route buses, coaches and motorcycles, have to be insured by the Omnibus Pool, which involves all insurance companies which set up shop in Malta. It had been set up because no individual insurance company was ready to cover individual vehicles by itself.
Vouching for its members' low accident claims record, the cooperative holds that minibus insurance premiums should not rise "because route buses or coaches make many insurance claims". The cooperative also claims that the Omnibus Pool did not inform minibus owners of the increase beforehand.
Dr Felice said in May the Motor Omnibus Pool informed the government of its intention to raise insurance premiums by 31 per cent following very substantial increases in costs and claim provisions.
Victims' demands had shot up, and the Pool was dealing with single claims for compensation in excess of Lm100,000. One claim reached the astronomical figure of Lm400,000, equivalent to the entire premium collected in one year, Dr Felice said.
"The government contested this premium increase and requested an investigation by the Malta Financial Services Authority. After providing the workings justifying our claim for a premium increase, the government decided that an overall 15 per cent increase was justified. We have protested against this decision but have not withdrawn insurance of public transport vehicles. Buses renewed their cover at the new rates, but 100 minibuses have decided not to," Dr Felice said.
He said that the minibus cooperative was claiming that the premium increase was based on inexistent and fictitious claims. The cooperative was also alleging that the Motor Insurance Pool was mishandling the claims of its members.
Dr Felice insisted that this is completely false. "Indeed we want to be cleared of these accusations and have asked for an independent investigation of our claims handling procedures. We were moving to this direction, but for some reason the minibus cooperative is not willing to accept the increase, pending this investigation," Dr Felice said.
"If a minibus is stopped, we will all stop," retorted Charles Mercieca, chairman of Co-op Services Limited, when contacted yesterday.
Expressing concern that a number of minibuses were circulating without an insurance cover, Mr Mercieca said the cooperative had asked to see the workings which justified the Omnibus Pool's request for an increase in insurance premiums, but had still received no explanation.
"The latest proposal, coming from the Roads Ministry, was for us to deposit the premiums, including the 15 per cent, in a bank account before the investigation starts. We are prepared to deposit the premiums according to the old rate, that is without the 15 per cent," Mr Mercieca said.
Minibus owners are promising to pay the extra 15 per cent if the investigation proves the Motor Omnibus Pool right, Mr Mercieca said.
"We still have a lot of questions, especially as to why the Omnibus Pool does not want to meet us. We hope this issue is resolved around the table," Mr Mercieca said.
On Thursday, The Times asked the Malta Transport Authority whether it was acceptable for the authority that minibuses were allowed to drive around and carry people without an insurance, and therefore without a license. What was the ADT doing about this situation? Have the police been asked to intervene? Has the ADT asked the cooperative not to let these minibuses drive around?
No replies were forthcoming by the time this newspaper went to print.