A recent study has shown that Chicago cab companies have a complex system in place that may limit the amount that passengers are able to collect in the event of a personal injury or wrongful death resulting from a cab accident. The way the system is structured, a person injured is likely to never recover more than the $350,000 minimum required by the City of Chicago, even in cases where the injured party requires lifetime medical care or when the family is suing on behalf of a victim that was killed as a result of an accident.
According to The Chicago Sun Times, this change in damage recovery resulted about twelve years ago when Chicago stopped cab companies from being able to have a monopoly on owning cabs within the city, and as it stands now, no one company can own more that twenty five percent of city-issued taxi medallions. Prior to this, two Chicago cab companies had a complete monopoly on the system and typically held multiple layers of insurance, which would be available to protect the company in the event of a lawsuit and provide higher monetary damages for victims. The new system allow companies to argue that the driver is a private agent and without being able to show that the driver is an agent of the company, the recovery can be much lower for victims. While the legislature coming in to stop monopolies is good for cab companies and clients alike, these changes made it harder for injured victims of Chicago taxi accidents to recover the amount they deserve for the harm or injury caused. To read more about the damage recovery caps for cab accidents in Chicago, please click on the link.