The NSW Government has made moves to address the growth of ride-hailing services like Uber, calling for feedback on how to treat insuring such services.
The NSW Government’s Point to Point Transport Taskforce last week released its discussion paper, which discusses insurance arrangements for the burgeoning class of rideshare services.
“The issue for ridesharing and CTP insurance is the potential underpayment of insurance premium relative to the risk of the vehicles and drivers,” the report states.
“While passengers of rideshare services, or other road users, are covered by the CTP scheme in the event of injury, rideshare vehicle owners could potentially find themselves facing recovery action for underpaid premium in relation to CTP insurance.
“In Sydney, Uber has a discretionary, contingent liability policy which may provide some coverage for drivers in this case. However, Uber has not shared the details of this policy. This does mean that owners of personal vehicles are potentially cross-subsiding the owners of vehicles being hired through UberX, who may have a higher risk profile because they are on the road for longer periods of time.”
The report identified a similar issue with third party property damage, warning Uber drivers that there is a risk their policies will not respond in the event of a claim.
The Insurance Council of Australia has welcomed the discussion paper, which ICA CEO Rob Whelan says is an opportunity to find a fair long-term solution.
“The discussion paper puts the spotlight on a range of insurance issues which must be adequately addressed by any new regulatory regime,” he says.