Page 11 - drive a2b FEB 2020 web

• Legislative changes within service. Service Vehicles would be
and outside of SIRA would be • The vehicle’s own policy would set equivalent to a Class 1
required to ensure that drivers be in force when it is not premium.
take out a driver policy and that providing a passenger service. • Usage-based premiums would
Authorised Service Providers apply to Passenger Service
(ASPs) take appropriate steps • The total premiums for service Vehicles driving for ASPs that
to ensure that drivers are provider policies would need to meet a minimum distance
appropriately insured e.g. the cover the risk pool of point to criteria/threshold.
Point to Point Commissioner point vehicles.
making it a condition of licence • Regulatory requirements such as • Private Hire Cars remain in
to have systems to ensure a claims management processes, vehicle Class 8.
valid driver CTP policy.
licensing and registration etc
• RMS will be required to make would be unchanged from a Option 4
system changes to allow standard CTP policy.
insurers to record the drivers • Premiums would vary Industry Agreed Risk
who have purchased the depending on the number of Rating Factors
additional cover.
vehicles requiring cover and Requirements:
• ASPs will be required to develop other approved factors e.g. • SIRA in consultation with
a suitable system to determine safety history of the service industry will determine the use
whether drivers have a policy provider. of specific passenger service
or not.
• Legislative changes outside risk rating factors to be included
of SIRA would be required to in insurer premium filings.
Option 2 ensure that ASPs take out an • For example, risk rating factors
Service Provider CTP umbrella policy. could be distance travelled,
• Insurers would be required to location, time of day etc.
Requirements: make system changes.
Key Changes:
• Specific Classes for Taxis • System changes for ASPs may
and Private Hire Cars will be be required to track additional • Taxis would remain in Class
removed. information of each driver 7 with relativities that reflect

• Taxis and Private Hire Cars will which could include driving the realised risk of increased
exposure and access to rank
be transitioned into Class 1 and behaviour. and hail work.
Authorised Service Providers
(ASPs) i.e. Taxi Service Providers Option 3 • Private Hire Cars would remain
and Booking Service Providers in Class 8 with relativities
will be required to take out an Usage-Based that reflect the realised risk of
additional Umbrella CTP policy Arrangements slightly increased exposure of
to cover operating vehicles. conducting these services.
Requirements:
Key Changes: • Other vehicles would remain in
• Premiums for passenger service the other Classes (Class 1, Class
• A CTP policy is attached to the vehicles would comprise a base 3 etc).
vehicle in the current way. CTP premium and a component
premiums will be as per other based on fare-paying kilometres • SIRA and industry will identify
vehicles in their class, e.g. Class (distance-based). relevant risk rating factors,
1. within each of these classes that
Key Changes: reflect any risks associated with
• ASPs will be required to take conducting a passenger service
out an ‘umbrella’ CTP policy • This option is dependent on the and allow insurers to increase
for vehicles that are providing successful implementation of premiums accordingly.
a passenger service or tasks the Horizon 2 arrangements.
directly associated with their • The base premium for Passenger
DRIVE A2B magazine · February 2020 11