Taxis with TC plates that opt in to pay their policies in instalments can reduce their premium if they travel less than 85,000 km a year.
There is an upfront premium payment, followed by an installment six months later. At the end of each installment period there is an adjustment of actual kilometres travelled compared to the pre-paid kilometres.
The upfront premium payment is half of the fixed annual premium and pre-pays for 27,000 km.
The second instalment pays for 58,000 km.
Any adjustment to the previous instalment based on the actual kilometres travelled are either credited or added to the next instalment.
The Fund levy for taxis, GST and tax input credit are inclusive.
The country taxi illustration shows how a taxi that travels 80,000km over a year can save by opting in to pay in instalments.