NSW workers’ compensation arrangements should be extended to ensure food delivery riders in the gig economy are covered for personal injury, the National Insurance Brokers Association (NIBA) says in a submission to an inquiry.

Only some gig economy platforms provide insurance, and at lower levels than in the state scheme, leaving riders who work for multiple brands at risk, it says, while many gig workers are not entitled to minimum wage provisions and can’t afford to take out protection privately.

“The ability for workers to receive compensation if they sustain an injury whilst performing employment duties should not be dependent on the commercial decisions of large corporations,” NIBA says.

The deaths of six food-delivery riders in 2020 and the subsequent lack of protections for injured riders and their families has highlighted shortcomings in employment law when it comes to the rise of the gig-economy.

The NSW State Insurance Regulatory Authority (SIRA) released a discussion paper in April to explore options to improve injury insurance solutions for riders amid a lack of clarity over whether they come under existing workers’ compensation laws.

Options include keeping the status quo but with more education and awareness about protections available, establishing a new scheme, requiring gig platforms to provide personal injury insurance and extending the existing scheme by deeming riders “workers” for the purposes of workers’ compensation legislation.

Gig-economy platforms have maintained that their driver and delivery partners are not employees but independent contractors, but the assertion has received limited attention in the courts as matters have often settled before judgment.

The submission says a person’s taxation status bears no direct relationship to their status as a worker for insurance scheme purposes.

NIBA says workers' compensation provisions could be easily amended to recognise food-delivery riders as “deemed workers” under the scheme.

Requirements would be met as they are engaged by the platform for the purposes of their trade and are directed regarding work performed and on its timing. Many platforms track riders, who may not receive further work if they fail to complete deliveries in a “timely” manner.

“It is possible that this cohort of workers may currently be entitled to compensation anyway, it just hasn’t been tested by the courts, so deeming them provides certainty to workers and platform operators,” the submission says.

NIBA says delivery riders who work for Uber or Deliveroo are covered under company injury insurance policies, but the benefits for workers and their families are significantly less than those available under the workers’ compensation scheme.

The maximum lump sum benefit payable for accidental death under the Uber Personal Accident Policy is $500,000 compared to $834,200 under the NSW scheme.

“It is not clear whether riders for other platforms are covered by similar policies,” NIBA says.

SIRA says it may undertake further consultation later this year as it finalises the preferred way ahead.