The Australian Securities and Investments Commission (ASIC) has suspended the financial services licence of Assurance Cover Australia until November 28 after it was found to not have the required professional indemnity insurance coverage.

Brisbane-based Assurance provides cover for drivers in the peer-to-peer transport industry.

It operates as a mutual fund and says it provides "efficient and timely assistance to members through the provision of a fund to indemnify members in the event of a motor vehicle accident”.

ASIC says it did not have adequate PI in place since April 2019. It will lift the suspension earlier if Assurance obtains the required insurance coverage. Assurance has held its licence since September 2014. During the suspension, it may not provide financial services other than to existing clients.

Assurance says it was established in response to the rising cost of insurance in the point-to-point transportation industry and aims to provide affordable risk protection with discretionary cover specifically for motor vehicles and drivers.