The NSW State Insurance Regulatory Authority (SIRA) says introducing minimum national benchmarks could help provide consistency in covering accidents involving driverless cars.

“These minimum benchmarks could be used to ensure that differences between schemes across the state and territories do not become more pronounced with the introduction of automated vehicles,” SIRA says in a submission to a National Transport Commission (NTC) options paper.

Benchmarks could include that injured people have to deal with only one insurer, that the scheme is compulsory for automated vehicles and that there is a suitable recovery mechanism.

The NTC asked for comment on six options, including the benchmarks proposal and an option – also supported by SIRA – that would amend compulsory third party (CTP) schemes to ensure injuries are covered regardless of whether an automated driving system is engaged.

“The effectiveness of existing arrangements in enabling the recovery of cost of damages from appropriate parties would be tested by the unique challenges posed by automated vehicles and the fact the specifics of their operation are largely unknown at this stage,” SIRA says.

“SIRA is considering several possible solutions that will meet these criteria including the creation of a reinsurance pool specific to automated vehicles.”

The Insurance Council of Australia (ICA) says further changes beyond initial CTP amendments should be made only if experience shows they are needed.

“If a light-touch approach is adopted there will be greater certainty, efficiency and transparency for road users because their path to recovering compensation for an injury will remain largely unchanged,” ICA says in its submission.

ICA rejects a national reinsurance pool, but says there should be a local automated driving system entity that the insurer has a right of recovery against, and which in turn could seek recovery from other parties.

The Insurance Commission of WA says present schemes are not designed to cover vehicle manufacturer negligence and product liability risks, and calls for more significant changes.

“The advent of automated vehicles presents a new set of risks that require new products and solutions to manage them,” it says.

The NTC will make recommendations to a meeting of state and federal transport ministers in May.