Brought to you by:
MIGA
MIGA

SIRA investigates CTP for taxis, ride-sharing

Facebook Twitter LinkedIn Google

The NSW State Insurance Regulatory Authority (SIRA) is consulting on compulsory third party (CTP) arrangements for taxis and ridesharing services such as Uber after transitional requirements expire next December.

A discussion paper outlining five options has been released following a workshop in September, with submissions on the paper requested by January 24.

“The new CTP arrangements will focus on fairness, affordability and sustainability; promoting competition as well as road safety; simplicity and privacy,” SIRA says.

Once feedback is received, further workshops will be held on putting the preferred option into effect.

The proposals include creating a new class for all passenger service vehicles, with insurers identifying relative risk-rating factors within the class.

Other arrangements could see existing separations maintained, while various risk factors to be considered by insurers – such as distance travelled, location or time of day – are also up for discussion.

Taxis currently choose either a fixed annual premium based on average annual kilometres or opt for instalment payments adjusted for actual kilometres.

Rideshare premiums are a combination of those paid by other private passenger vehicles, plus rates for when a vehicle has a fare-paying passenger.

The options paper says states and territories are taking various approaches in response to rideshare vehicles being “in the point to point industry”.

Most jurisdictions, with the exception of Victoria, separate ridesharing and taxis into different vehicle classes in their schemes.

“SIRA notes that there are multiple possible solutions that should be explored when it comes to the new CTP arrangements for the point-to-point industry,” the paper says.

More details on the consultation are available here.