Well it is not quite what it appears. In order that a limousine can carry more than 8 passengers for hire and reward, it must first be issued with what is known as a Certificate of Initial Fitness, or by its abbreviated term, a CoIF. The problem here is that the conversion work to gain a CoIF requires a substantial investment and this would have to be reflected in the cost of the limousines and therefore the hire charges, making it too prohibitive for most operators . At this time, there are a very limited number of limousines with a CoIF, probably less than 20 in the country and those that do have a CoIF will, quite rightly, shout about it.

Whilst there is certainly some merit in having a strict conformity process for vehicles that could regularly be carrying up to 16 passengers, there is also an argument that the regulations where never designed for stretched limousines and therefore some flexibility should be considered to make conformity easier to attain, without necessitating a relaxing of the rules that may put passengers at risk. Needless to say, the authorities have not listened to the industry and therefore, the more enterprising operators have sought and found a work around.

Currently, it is possible to complete some minor conversion work and then register a limousine as a private minibus, this is perfectly legal and means that the limousine will not have had to pass an SVA or gained a Certificate of Initial Fitness. Once the limousine has been registered as a private minibus, it can be used to carry up to 16 passengers, depending on weight etc. Therefore anyone is entitled to drive this ‘private minibus’ on a normal drivers licence, provided they have a D1 on their licence. However, it still cannot, under any circumstances, be used for hire and reward without the Certificate of Initial Fitness.

With limousines costing anything up to £100,000, few operators will be willing to actually let you drive the limousine yourself, so the criteria employed to be deemed an appropriate driver is quite strict, this means that in many cases, you will be obliged to employ a chauffeur from an approved ‘pool’ of chauffeurs provided by the limousine company. No two operators work in the same way, but here is a typical example of how the practice works.

You and a group of 13 friends want to hire a limousine that can carry all 14, but, for whatever reason, you do not want to hire two limousines. Therefore, you approach a company that operates a 14 seat limousine which has been registered as a private minibus and they are prepared to hire out on a self-drive hire contract. The limousine operator will agree to hire you the limousine on a “self-drive” basis, but (typically) insist that, because it is a large and a specialist vehicle, you use an experienced, professional driver or chauffeur from a ‘company’ that provides these on a casual basis. Then, under normal circumstances, you would pay the hire fees to the limousine operator and settle with the chauffeur direct. So, whilst there is a little more paperwork, you now have a limousine which can carry you and all of your friends.

Is this legal? Probably, but no-one really knows, the self-drive hire contract and the rules governing the scheme were, by all accounts drawn up by a Barrister with expertise in the transport sector. It would appear that the Barrister has indicated that provided the rules are followed, the practice is perfectly legal under existing legislation. Those operating this scheme now claim that it is legal, in the strictest sense, this is not true, all they have had is a ‘barristers opinion’ and that is all it is, to determine whether or not the scheme is legal would require a court case. So far, VOSA who would normally enforce the rules have done nothing, so the whole matter remains in abeyance.

Nonetheless, there are risks attached, and these fall mainly with the hirer. For example, the hire agreement would normally make clear that the vehicle cannot be used for ‘hire and reward’, that is to say, the hirer cannot accept payment from his or her friends towards the cost of the vehicle. In reality, is is most unlikely that anyone would be feeling the benevolent towards their friends or family. If it was proven that the vehicle was indeed
used for hire and reward, then the hirer could be charged, amongst other things, with operating a vehicle for hire and reward without an Operator Licence and without a Certificate of Initial Fitness. The driver or chauffeur would also not be immune from prosecution if it could be proved that he or she was, in any way, complicit in the arrangement. In addition, most self-drive hire vehicles are not insured for hire and reward, therefore, if your vehicle was involved in accident, the hirer, could theoretically become personally liable for any claims. Some insurance companies have included hire and reward on the policies, but it is fair to conclude that if they are insuring the limousine (or private minibus) for hire and reward, the insurance companies and therefore the limousine operators must have an inkling that the vehicle may actually be used for that purpose.

On a self-drive hire policy, there is also the very real possibility that the vehicle has an insurance excess, therefore it is conceivable that the limousine operator will seek to recover this from the hirer in the event of an ‘fault’ accident. If the hirer has “employed” a driver from a pool proposed by the limousine operator, it may not be reasonable for the hirer to be responsible for the excess in the event of an accident where their driver was at fault.

This practice is relatively new and untested in respect of the current legislation, but it is probably more of a moral issue than a legal one. Few would condemn business people who look to get a return on their considerable investment by finding ways to provide consumers with what they want. However, if there was not a justification for a Certificate of Initial Fitness on a passenger carrying vehicle used for hire and reward, then surely it would no be there. It is safe to assume that the authorities consider compliance to be a safety issue. Furthermore, there is probably no need for a company operating in this way (self-drive hire) to have a private hire or bus operator licence, if this is the case, then how safe can the passengers feel when there is, theoretically, no regular checks on the chauffeur and the vehicle? Limousine companies that operate a limousine business for hire and reward are required (from 1st January 2008) to have either a private hire licence or a bus operator licence. Both of these licenses require that the limousine are subjected to a strict and regular test. In addition, the private hire operators or bus operators must employ drivers with the appropriate licence for the vehicle in question, this means that the chauffeur will have been subjected to a medical and criminal records bureau check.

Cars for Stars Limited will not, and do not, operate a self-drive hire limousine hire service with contracted in/out chauffeurs and therefore our views must be taken in context and would, inevitably, be considered biased by those that do operate this scheme. Therefore, we will not hire behind a cloak of anonymity and we are happy to place on record that we are a fully licensed private hire company with limousines licensed for private hire and a maximum of 8 passengers. We do not condemn those that operate this type of scheme, but we do believe that the relevant authorities should investigate the practice further and then introduce a test case in order that the legality issue can be clarified once and for all. The industry is currently in discussions with the relevant bodies with a view to amending existing legislation to permit and therefore regulate the use of limousines in a category of 9-16 passengers, most likely under the auspices of the local authorities. We fully support this well intentioned move. We do not, however, agree with anything practice that could lead to a questioning of the integrity of those that operate within the limousine industry.

For those consumers that intend to hire a limousine with a view to carrying more than 8 passengers from a self-drive hire limousine operator then we recommend that they consider the following:

1. Read the self-drive contract hire carefully.

2. Tell the company you intend to hire the limousine from how you intend to fund the vehicle and ask them if that would be considered hire and reward, then note their response in writing or do this in front of a witness. One definition of hire and reward has been provided by the Transport Office, you can read it here: Definition of Hire and Reward

3. Check the terms and conditions of the hire to see whether or not the vehicle is covered for hire and reward, if it is, and you should fall foul with the law, then in theory you will not be in a position where the vehicle is uninsured.

4. Find out if there is a policy excess and if there is, who would be responsible for reimbursement in the event that accident was considered the fault of your driver

5. Remember, you are employing the chauffeur, so try and establish whether or not you will still be liable for the hire cost if the driver does not turn up

6. Establish who will be responsible in the event that the vehicle has any faults which could give rise to Police action at the roadside. Would it be you as the hirer, the driver, or the hire company. It may be that all, or just some of you would be considered responsible.

7. You should be aware, that ignorance of the law is not considered an excuse. So be under no illusion, if you intend to accept any form of payment from any of the passengers, that provides them with the right to be carried in the limousine, then this is hire and reward. It doesn’t matter whether this is a direct or indirect payment. As the hirer, it is your responsibility, if you are found to have provided a hire and
   reward service, then you must have, where more than 8 passengers are carried, a bus operators licence, the chauffeur must have an appropriate PCV licence and the vehicle must have a Certificate of Initial Fitness. This is no grey area, it is cast in stone!