Reforms will mean a level playing field for taxis, hire cars and ride sharing vehicles. Taxi premiums will be reduced by up to 40 per cent.
In response to the challenges resulting from the introduction of ride-share services into the point-to-point transport market, we started a 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.
Taxis currently pay much higher CTP premiums than other point-to-point services. Under the reforms, taxi CTP premiums will be reduced by up to 40 per cent.