A Melbourne UberX driver has won an appeal against a conviction for operating a commercial passenger vehicle without a licence.

The decision effectively legalises UberX in Victoria, which places insurers on a firmer footing in covering the company’s drivers.

However, the Insurance Council of Australia (ICA) says the fate of the ride-sharing industry must ultimately rest with governments.

The successful appeal is a blow to the state’s Taxi Services Commission (TSC), which brought the charges against Nathan Brenner after an undercover sting identified 15 UberX drivers, including Mr Brenner, operating in Melbourne.

Last year a magistrate found Mr Brenner guilty on two counts of operating without a licence and one count of driving a commercial passenger vehicle without accreditation.

Throughout Mr Brenner’s trial and appeal, UberX has continued to operate in Melbourne, even as the State Government deliberates on the future of the ride-sharing service in the state.

In the meantime, a Victorian County Court judge has dismissed the charges and ordered the TSC to pay Mr Brenner's appeal costs.

ICA spokesman Campbell Fuller told insuranceNEWS.com.au the council “will continue to urge state and territory governments to clarify the laws governing ride-sharing”.

“This will provide certainty for ride-share drivers and passengers, and assist insurers to respond with appropriate products to cover the emerging transport market.”