NSW Taxi Council Welcomes Government Action on CTP Insurance

10 March 2016 | NSW Taxi Council

The NSW Taxi Council today welcomed the NSW Government’s Options Paper on reforms to Compulsory Third Party (CTP) Insurance for the point to point transport sector, including taxis.

State Insurance Regulatory Authority Discussion Paper

There has been a lot of work put into reviewing this issue over a number of years and, in light of the NSW Government’s reforms to the point to point transport sector, this is a very important step forward.

NSW Taxi Council CEO Roy Wakelin-King said that it was inequitable for taxis to have to pay over $7,000 annually in CTP insurance per vehicle whilst its competitors are paying only a small fraction of that amount.

“What we are seeking is a genuine level playing field so that taxis can compete fairly and ensure that risk is properly assessed and priced across the point to point transport sector as a whole,” he said.

“We also believe that it is inappropriate for mum and dad private vehicle owners to be cross-subsidising point to point transport operators, particularly those who provide rideshare services. 

“There is little difference in the nature of the work that most point to point vehicles do these days, and these lines will be further blurred by the NSW Government’s recently announced reforms to this sector.

“Any new CTP insurance scheme for point to point transport services must therefore be fair, equitable and transparent, including having obligations placed on organisations providing point to point transport services to ensure that their vehicles are properly insured,” Mr Wakelin-King said.

The NSW Taxi Council will review the options outlined in the discussion paper and provide a response in accordance with the Government’s requirements.

“This is a unique opportunity to address a long standing inequity which has been putting upward pressure on costs and, as a result, higher prices for consumers,” Mr Wakelin-King said.

“With greater flexibility for insurers and opportunities for industry participants to get benefits for innovations that improve safety, this has the potential to provide wide ranging benefits for taxi providers and customers alike.

“It is therefore hoped that this process will lead to a fair and balanced outcome for all.”

The State Insurance Regulatory Authority (SIRA) options paper is available at www.sira.nsw.gov.au