The Insurance Council of Australia (ICA) says NSW drivers and passengers of ride-hailing services such as Uber may find themselves exposed after accidents.

The council has welcomed the State Government’s Point to Point Transport Taskforce discussion paper, which acknowledges the need to revise the regulatory framework and says ride-hailing services are currently operating unlawfully.

“The taskforce has highlighted serious questions in relation to ride-hailing services and insurance cover – not only for the protection of the driver’s potential liability in a collision but also the passenger and members of the public,” ICA CEO Rob Whelan said.

“Ride-hailing services are operating outside NSW regulations and, in most cases, the drivers’ normal comprehensive motor vehicle insurance is unlikely to cover them.”

Mr Whelan says the implications for the compulsory personal injury insurance scheme are also unclear.

Drivers may expose themselves to substantial financial loss if they are involved in collisions while using ride-hailing services, he says.

“Any motorist considering making money by providing a ride-hailing service should first discuss this with their insurer, to check the impact this might have on their motor vehicle insurance policies, in particular comprehensive or third-party property insurance.

“Any passengers who use a ride-hail service, or any motorist offering a ride-sharing service, should be aware of the high level of uncertainty about how their insurance policies may respond as a result of an incident.”

Submissions to the discussion paper must be made by September 25.