Page 8 - drive a2b FEB 2020 web

NSW CTP REV AMP

New Point to Point
CTP arrangements

Options Paper
NEW
SOUTH released by SIRA
WALES

NEWS On 1 December 2020, the current Compulsory
Third Party (CTP) transitional arrangements for the
point to point industry under the Motor Accident
Injuries Act 2017 (the Act) will expire. Transitional
arrangements require ‘similar’ premiums between
taxis and comparable hire vehicle operators for
the fare paying component. Meaning that the CTP
insurance costs are adjusted to reflect the distance
that a point to point vehicle spends on providing
passenger services.

The State Insurance Regulatory Authority (SIRA)
has released an options paper seeking comment
on five options for new CTP arrangements for the
point to point industry.

The new arrangements are important because it
provides an opportunity to create an environment
that fosters lower premiums, improved safety and
greater flexibility to respond to future changes in
the Point to Point industry.
The NSW Taxi Council held a CTP Review
workshop with members across Sydney
metropolitan and country NSW, participated in
the consultation process and have submitted
a response on behalf of the Taxi industry in
NSW. NSW Taxi Council members have also
been encouraged to make their own individual
submissions.
Most Australian States separate rideshare and taxis
into different vehicle classes in their respective
CTP schemes, with different pricing arrangements.
Victoria is the only exception, where there is
only one class of vehicle (Commercial Passenger
Vehicle) with insurance calculated through
community risk rated factors.

Recently, South Australia has introduced a new
premium class for rideshare vehicles.
8 DRIVE A2B magazine · February 2020