As many as 60 Perth taxi drivers have been driving without adequate insurance for almost two months without knowing SGIO had cancelled their motor fleet policy for non-payment.

The West Australian newspaper says the drivers have been in breach of their taxi licence conditions since March 9, when SGIO cancelled the policy.

Sorrento Cabs MD Milan Petkovic says he will personally cover the cost of repairs to cabs damaged in the March storms following revelations that operators insured under the now-cancelled policy have had their damage claims to SGIO rejected. He says he will also refund the balance of their policies.

Mr Petkovic blames a dispute with SGIO over the premium after some drivers withdrew from the scheme, and says he was only informed of the cancellation last week.

But a spokesman told the newspaper that “SGIO told Mr Petkovic on multiple occasions the policy was cancelled”.

Taxi Council of WA CEO Kevin Foley is trying to get the drivers new insurance. Under WA’s taxi licensing laws operators must have public liability insurance and their taxis must be comprehensively insured at all times.

The WA Police fraud squad is believed to be investigating.