The Insurance Council of Australia (ICA) says key reforms proposed in the Victorian Taxi Industry Inquiry will reduce cab drivers’ financial exposure and benefit other road users and their insurers.

The inquiry’s report recommends compulsory third-party property insurance for taxi operators, who would have to indemnify drivers for vehicle damage. It says any policy excess should be paid by the permit-holder, unless the driver has been wilfully negligent.

ICA CEO Rob Whelan says it is estimated that up to 70% of Victorian taxis do not have third-party property cover, and the reforms will help insurers when not-at-fault customers are involved in collisions with taxis.