Reform of Queensland’s “personalised transport” industry, including ride-sharing, must be fair to stakeholders, the Insurance Council of Australia (ICA) says.

“ICA submits that while flexibility is required, a level playing field must be maintained,” CEO Rob Whelan says in a submission to a state government review. “This will ensure established businesses do not have to navigate cumbersome regulatory and compliance requirements that new businesses are not subject to.”

ICA favours a separate classification for ride-sharing vehicles, similar to taxis, to reflect the higher risk they represent for compulsory third party (CTP) insurance claims.

“One of the advantages of separate classification is the class can remain fully funded as premium remains aligned to risk,” Mr Whelan says. “An additional advantage is that separate classification can provide useful insights into the claims trends for ride-sourcing vehicles.”

A new category for ride-sharing vehicles is one of four CTP reform options proposed by a government taskforce overseeing the review.

Another option, calculating CTP cover based on individual risk, would address concerns over whether appropriate pricing is being applied, ICA says.

This means calculating the “CTP premium based on business use hours or distance”, Mr Whelan says. “Time spent on the road in the personalised transport capacity would be measured and an additional premium charged.”

Ride-sharing services provided by operators such as Uber are illegal in Queensland. The Government says the review aims to identify the emergence of technology-based innovations challenging the regulatory framework.

The taskforce will deliver its final reform options to the Government next month.