Telematics may be used to set compulsory third party (CTP) premiums for taxis and ride-sharing vehicles in NSW.

Innovation and Better Regulation Minister Victor Dominello says a new usage-based component would apply on point-to-point vehicle premiums under a proposed overhaul of the state’s motor accident insurance scheme.

“Using telematics, a form of in-vehicle technology already used by most operators, will allow us to record how often a driver is on the road, at what time of day and how safely they drive,” he said. “It will enable us to price greenslip premiums accordingly.”

NSW taxis currently pay an average premium of $7800 a year, while ride-sharing drivers pay Class 1 premiums ranging from $537-$886.

The State Government’s proposed reform would result in premiums for taxi drivers falling by up to 40%.

Mr Dominello says ride-sharing drivers will continue to operate in the general passenger vehicle class of the CTP scheme, but operators such as GoCatch and Uber will be required to make periodic premium top-up payments.

“These reforms will create a more level playing field between established and emerging participants in the point-to-point transport market,” he said.

Subject to Parliament’s approval, the new CTP scheme could take effect from July next year.