Volume 52 · 1234
Public Law 75–809
To provide that all cabs for hire in the District of Columbia be compelled to carry insurance for the protection of passengers, and for other purposes.
Approved June 29, 1938
Statutory text
AN ACT
To provide that all cabs for hire in the District of Columbia be compelled to carry insurance for the protection of passengers, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
That the Public
District of Columbia.
Passenger motor vehicles for hire, insurance requirements.
Utilities Commission of the District of Columbia is hereby directed to Passenger motor require any and all corporations, companies, associations, joint-stock companies or associations, partnerships, and persons, their lessees, trustees, or receivers, appointed by any court whatsoever, operating, controlling, managing, or renting any passenger motor vehicles for hire in the District of Columbia, except as to operations licensed under
Exceptions.
paragraph 31 (b) of the Act approved July 1, 1932, known as the “License Act”, and except such common carriers as have been expressly exempted from the jurisdiction of the Commission, to file with the Commission for each motor vehicle to be operated a bond or bonds, policy or policies, of liability insurance or certificate of insurance in lieu thereof in a solvent and responsible surety or insurance company authorized to do business in the District of Columbia, conditioned for the payment to any person of any judgment recovered against such corporations, companies, associations, joint-stock companies or associations, partnerships, and persons, their lessees, trustees, or receivers, appointed by any court whatsoever, or renters of their cabs, for death or for injury to any person or injury to any property, or both, caused in the operation, maintenance, use, or by reason of the defective construction
Form, terms, etc.
of such motor cabs or other vehicles. Any such bond or undertaking or policy of liability insurance shall be in such form and
Proviso.
Limitation on insurer’s liability on any one judgment.
on such terms or conditions as the Commission may direct. Provided, That such bond or policy may limit the liability of the surety or insurer on any one judgment to $5,000 for bodily injuries or death and $1,000 for damage to or destruction of property, and all judgments recovered upon claims arising out of the same subject of action to $10,000 for bodily injuries or death and $1,000 for damages to or destruction of property, to be apportioned ratably among the judgment creditors according to the amount of their respective judgments.
Issuance of insurance limited to authorized companies.
Any such policy or liability insurance shall be issued only by such insurance companies as may have been authorized to do business in the District of Columbia, and any such bond or undertaking shall be secured by a corporate surety approved by the Superintendent of
Rules relating to writing taxicab insurance; rates.
Insurance of the District of Columbia. The Superintendent of Insurance of the District of Columbia shall be empowered to make all reasonable rules and regulations relating to the writing of taxicab insurance and shall be empowered to govern the maximum rates to
Cancelation; notice of intention.
be charged on such insurance. No such bond or policy of insurance may be canceled unless not less than twenty days prior to such cancelation or termination notice of intention so to do has been filed in writing with the Commission unless cancelation is for nonpayment of premiums, in which event five days’ notice as above provided shall be
Operation unlawful unless covered by approved bond or insurance.
given. It shall be unlawful to operate any vehicle subject to the provisions of this paragraph unless such vehicle shall be covered by an approved bond or policy of liability insurance as provided herein.
Rules and regulations.
The Public Utilities Commission shall have the power to make all reasonable rules and regulations which, in its opinion, are necessary to make effective the purposes of this section.
Provisions in lieu of bond, etc.
Any owner of a public vehicle required hereby to file a bond or policy of insurance may, in lieu thereof:
Blanket bond or blanket policy of liability insurance.
(a) File with the Public Utilities Commission a blanket bond, or a blanket policy of liability insurance, in an amount to be approved by said Commission, but not to exceed $75,000, conditioned as required by this Act, and covering all vehicles lawfully displaying the trade name or identifying design of any individual, association, company or corporation. (b)
Sinking fund of sufficient amount in trust.
Create and maintain a sinking fund in such amount as the Public Utilities Commission may require, but not in excess of $75,000, and deposit the same, in trust, for the payment of any judgment recovered against such owner, as provided in this Act, with such person, official or corporation as said Commission shall designate.
Proviso.
Requirements.
Provided, That should any such owner elect to comply with the provisions of paragraphs (a) or (b) of this section, such owner shall first file with the Public Utilities Commission an admission of liability, in conformity with the principle of respondent superior for the tortious acts of the driver or drivers of such vehicle or vehicles aforesaid as shall be driven with the trade name or identifying design of such owner.
Exemption from attachment, etc.
Any cash or collateral deposit and/or any sinking fund herein provided for shall be exempt from attachment or levy for any obligation or liability of the depositor thereof, save as herein provided.
“Owner” defined.
Within the meaning of this paragraph, the word “owner” shall include any corporation, company, association, joint stock company or association, partnership or person, and the lessees, trustees or receivers appointed by any court whatsoever, permitting his, their or its trade name and/or identifying design to be displayed upon vehicles governed by this Act.
Any violation of this section or of the regulations lawfully promulgated
Penalty for violation.
thereunder shall be deemed a misdemeanor and upon conviction shall be punishable by a fine of not more than $300 or by imprisonment for not more than ninety days, and/or cancelation of license.
This Act shall become effective sixty days after final passage.
Effective date.
Approved, June 29, 1938.