The NSW Taxi Council advised today that it had written to the Australian Prudential Regulation Authority (APRA) to ask them to investigate the insurance policy being offered by NRMA to illegal ridesharing drivers in NSW.
The NSW Taxi Council advised that it had spoken to NRMA Insurance today and had been told that it (NRMA) would continue to provide insurance cover to Uber X drivers despite being advised that these services were illegal in NSW. The NSW Taxi Council also stated that NRMA had advised that there was no definition regarding the term ‘occasional business use’ for this cover and that therefore it is apparent the extent of this occasional use was at the discretion of the Uber X driver.
CEO of the NSW Taxi Council, Mr Wakelin-King, said that the NSW Taxi Industry was both confused and dismayed as to how an insurance company can provide insurance cover for an illegal service, no matter how ‘occasional’ the illegal service may be.
“The many thousands of members of the NSW Taxi Industry have been doing the right thing for many years and purchased proper insurance with firms like NRMA on the belief that they would support organisations and families who comply with the law. We have always understood that if you carry out an unlawful activity in relation to the insured service or product, then that policy would be void," Mr Wakelin-King said.
"This is like providing home insurance and allowing that home to be used illegally as long as this use was only occasional.
"We believe this has significant implications for the many thousands of drivers, operators and owners within the NSW Taxi Industry who purchase insurance and that is why we have written to APRA to investigate this matter,” he said.