Thursday, May 19, 2011

Drivers as Insurance Policy


I have been in Jakarta for a week. I enjoy the experience, although I learn the true meaning of traffic jam in Jakarta. All the traffic jams I experienced in New York, Boston, or Toronto are pale in comparison. Traffic jams in Jakarta are chaotic and at the same time fun to watch.

I used to think Jakartans wasted their money by hiring drivers. But no more. I had suspected that these drivers must have filled an important role. I found that role yesterday when I discussed the madness of Jakartan traffic jam yesterday with my junior high school reunion.

Basically drivers in Jakarta serve two roles: (i) time saver and (ii) liability protection. It is not unusual to spend 3-4 hours per day in traffic, so drivers are huge time savers. One can work in the car, make phone calls, and coordinate work activities.

The chaotic mixture of motorcycles, trucks, carts, and cars of all sizes creates a high-risk situation for car drivers. If a car is involved in an accident with a motorcycle, the car driver is by default on the wrong side. Having a driver removes the risk of personal liability for the owner of the car.

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