Uber has won the green light to operate legally in Tasmania, with the passing of the Taxi and Hire Vehicles Amendment Bill in State Parliament last week.

Minister for Infrastructure Rene Hidding says the reform puts Tasmania at the forefront of the sharing economy and will provide jobs, consumer choice, competition and productivity benefits for the community.

The Insurance Council of Australia (ICA) says the decision will provide certainty for Tasmanian ride-share drivers and passengers.

“Regulatory clarity will also enable insurers to respond to demand for motor insurance products that provide appropriate protection for these drivers and not-at-fault parties in a motor accident,” it says.

ICA advises drivers to contact their insurers before offering ride-share services, to ensure they have the appropriate policy.

It says personal motor insurance policies may not automatically cover damage sustained while using a vehicle for a commercial purpose.

Tasmania’s Department of State Growth will work on regulatory details, to enable Uber to start operations.

The ride-share service is expected to roll out in Tasmania before the end of the year.