The new CTP scheme provides a level playing field for taxis, hire cars and ride sharing vehicles. Taxi premiums have been reduced by an average of 40 per cent.
In response to the challenges resulting from the introduction of ride-share services into the point-to-point transport market, we conducted public consultation to review of Compulsory Third Party (CTP) motor vehicle insurance for point-to-point vehicles.
The objective of the review was to ensure that the CTP insurance framework supports ride-sharing services alongside traditional forms of point-to-point transport such as taxis and hire cars.
A public consultation process was held and submissions received were reviewed to determine the best approach.
As a result, premiums paid by point-to-point transport vehicle owners, such as taxis, hire cars and ride sharing vehicles, will be based on usage.
This means that vehicles that are on the road more will pay higher premiums than those that are only used for this purpose for a limited time each week.
Under the previous CTP scheme, taxis paid much higher CTP premiums than other point-to-point services. Under the new CTP scheme, taxi premiums have been reduced by up to 40 per cent.