The Insurance Council of Australia
has called on the New South Wales government to “swiftly clarify” the legality of ride-sharing services in the state.
The ICA has also called for the introduction of a separate class of CTP insurance for vehicles that engage in ride-sharing in a bid to keep users safe.
With the recent announcement that ride-sharing would be legalised in the ACT, New South Wales is considering its ride-sharing options and the ICA has approached the ongoing Point to Point Transport Taskforce with a submission aimed at creating an appropriate regulatory regime.
“The Insurance Council of Australia
calls on all state and territory governments to clarify the legality of ride-hail services so appropriate insurance policies can be developed to protect drivers and their passengers,” ICA CEO Rob Whelan said.
“Though some insurers have already taken steps to cover ride-hail providers under limited circumstances, market forces will ensure the industry fully responds to the commercial needs of these providers once governments clarify the legal status of the services.”
Whelan stressed that the current system, which sees ride-sharing users pay the same CTP as private vehicles rather than a commercial class is unfair and needs to be addressed quickly.
“The ICA would like to see ride-hailing vehicles classified separately to normal private-use vehicles in NSW due to the increased time they’re on the road and the probable increase in risk that represents,” Whelan said.
“The owners of cars used for ride-hail services should pay a higher CTP premium to ensure there are adequate funds to meet claims, just like the owners of hire cars and taxis, without forcing private motorists to subsidise their costs.”
In their taskforce submission, the ICA stressed that ride-share operators such as Uber should “face the same consumer and safety regulations as other service providers in the same transport category as determined by the state government.”