If you provide a passenger service in a taxi, hire car or rideshare, here is an opportunity to have your say about CTP insurance. Current transitional arrangements for CTP in NSW expire 1 December 2020. State Insurance Regulatory Authority has just released a CTP policy options paper for all point to point vehicles. It provides an opportunity to influence new CTP arrangements.
Five policy options
Option 1 – Point to point driver policy
This option places taxis and hire vehicles in Class 1. It requires two CTP policies – one for the vehicle and one for the driver. The vehicle CTP policy applies at all times except when providing a passenger service. This is when the driver CTP policy applies. Therefore, the extra policy reflects the extra risks of their driving behaviour and further exposure.
Option 2 – Service provider CTP
This option also places taxis and hire vehicles in Class 1. It also requires two CTP policies – one for the vehicle and an umbrella policy for the service provider. The vehicle CTP policy applies except when providing a passenger service. This is when the service provider CTP policy applies. As a result, pricing reflects the safety performance and policies of the service provider, eg, Uber.
Option 3 – Usage-based arrangements
This option also places taxis and hire vehicles in Class 1. The CTP policy includes a base Class 1 premium plus usage rate after a minimum distance. The usage rate may be a flat rate based on the service provider, or a variable rate based on time of day, location, distance travelled etc. Providers may pass on costs of the usage premiums to their customers.
Option 4 – Industry agreed risk rating factors
All vehicles retain their current Classes, including taxis and private hire cars. SIRA consults with insurers to set additional passenger service risk rating factors. These could include distance travelled, location, time of day etc. The focus is on creating safer driver behaviour.
Option 5 – New vehicle class
All vehicles providing a passenger service transition to a new Class that reflects their risk. Currently, most states and territories in Australia, except Victoria, separate rideshare and taxis into difference classes. South Australia has just introduced a new Class for rideshare.
Submissions to the CTP options paper
If you are interested in giving feedback on the options paper, answer all questions on the online form and send by Friday 24 January 2020.
Post to: SIRA
Level 6, McKell Building
2-24 Rawson Place
Sydney NSW 2001