A national reinsurance pool to cover injuries suffered in driverless car crashes is among policy options reached by the National Transport Commission (NTC).

Governments and the insurance industry are grappling with changing liability implications for compulsory third party schemes as automated driving systems become more common.

“It is anticipated that insurance will progressively shift from covering driver negligence to covering [automated vehicle] technical failures,” an NTC paper, issued last week, says.

Its six options include three based on present schemes and three new approaches, with recommendations due to go to state and federal transport ministers next May.

NTC Acting CEO Geoff Allan says current laws are generally set up to cover injuries caused by human error, rather than product faults.

“Laws in most states and territories do not contemplate a non-human driver controlling a vehicle,” he said. “In addition, several jurisdictions require human fault to be proved for compensation to be paid.”

The discussion paper says option three, which expands present schemes to cover automated vehicle injuries, best meets the NTC assessment criteria and would be the simplest to implement.

Under this option, insurers would have rights of recovery against manufacturers, but the paper says it could be complex to establish negligence and product liability. A modification may involve a reinsurance pool funded with contributions from all parties that might be responsible for malfunctions, including manufacturers and telecommunications providers.

The paper also suggests option three could be introduced initially while other approaches are prepared.

“We welcome submissions from insurers, manufacturers, legal experts, academics and individuals,” Dr Allan said.

Heads of motor accident injury schemes have agreed that whatever model is decided upon, no one should be worse off if hurt by an automated vehicle than they would if a person is in control.

Submissions are open until December 12. For more information, click here.