Compulsory Third Party Insurance Reform Crucial to a Fair Go

20 September 2016 | NSW Taxi Council

The NSW Taxi Council today said that reform to the Compulsory Third Party (CTP) insurance scheme is vital for the future viability of the taxi industry. 

22 August 2016 - Compulsory Third Party Insurance Reform, Point to Point Transport

The present scheme is poorly structured, does not reflect the changing nature of the commercial use of vehicles, is highly inefficient and leads to protracted legal disputes which results in premiums being much higher than what is necessary. 

This has significant flow-on effects to industries such as the taxi industry which is paying 11 times more than its competitors and that of the average motorist. 

CEO of the NSW Taxi Council Mr Roy Wakelin-King said, “Taxi owners in Sydney are now paying over $9,000 for their CTP greenslip insurance whilst Uber drivers are paying less than $800. This is clearly unfair and unsustainable.” 

“Without reform to the current CTP scheme, owning and operating a taxi could become uneconomic when compared to ridesharing and this is clearly not in the public interest. 

“An at fault scheme with vehicle classifications that do not reflect the modern reality of providing point to point transport services is resulting in astronomical increases in premiums for taxis whilst Uber’s insurance costs are being subsidised by private vehicle owners. In the current debate, this issue has not even got a look in, and the light needs to be shone on the fundamental problems currently existing in the present CTP scheme. 

“Uber drivers provide a very similar service to taxis, yet they continue to be classified as private vehicles for greenslip insurance purposes. Add to this the inefficiencies of the current scheme and you have a system that is heavily weighted against taxis which is now leading to financial stress amongst taxi owners,” Mr Wakelin-King said. 

Whilst Mr Wakelin-King acknowledged the necessary debate around ensuring proper protections for people who are injured in vehicle accidents, he asked all NSW Parliamentarians to look through the noise of self-interest that has emerged in this debate and to consider the importance of ensuring that the CTP scheme is sustainable and reflects the needs of a modern society. 

“The reforms need to go far beyond the current focus of a no-fault/defined benefits scheme. There are important issues regarding sustainability, fairness and the management of risk, and these matters need to be properly addressed in order to fix a very broken system.”