The State Insurance Regulatory Authority (SIRA) is seeking broad community and industry feedback on injury insurance arrangements for gig economy food delivery riders to clarify whether they are covered under existing New South Wales (NSW) workers' compensation laws.

For gig economy businesses, riders and drivers are considered “independent contractors.” Therefore, the company is not obligated to pay workers' compensation in the event of injury or death, leaving the families without any income.

Some delivery riders are covered by compulsory third-party (CTP) or other insurance if they are injured or killed at work, but others still do not have these benefits.

SIRA's discussion paper details options to improve injury insurance for riders:

• Maintain the status quo with increased education and awareness about existing personal injury and income protections.
• Require gig platforms to provide personal injury insurance for their food delivery riders.
• Establish a scheme to provide a personal injury insurance safety net for food delivery riders.
• Establish a scheme to provide personal injury insurance to food delivery riders modelled on motor accidents (CTP) scheme benefits.
• Establish a scheme to provide personal injury insurance for food delivery riders modelled on workers' compensation protections.
• Extend the existing workers' compensation scheme to cover food delivery riders by deeming food delivery riders as “workers” for workers' compensation legislation.

SIRA seeks feedback on the discussion paper until 5pm on May 28, 2021. You can submit your feedback via email to [email protected]. The input gathered through the consultation process will be critical to inform the regulator's advice to the NSW government.

For enquiries about the consultation process, you can contact [email protected].