A new class of premiums for rideshare vehicles have been announced, together with a fall in rates for taxis, passenger cars and hire cars under the latest changes announced by the ACT Compulsory Third-Party (CTP) Insurance Regulator today.
CTP insurance premiums charged by Suncorp Insurance for its GIO, AAMI and APIA brands will decrease from 1 April 2016 for passenger vehicles, while the NRMA’s premiums for passenger vehicles will remain unchanged.
Lisa Holmes, the acting CTP Regulator for the ACT, said that the new premiums continue to demonstrate the benefits of a competitive market since the arrival of new insurers widened the choice for ACT consumers in mid-2013.
“A significant change is the introduction of the new rideshare class, which will come into effect from April 1. The higher premiums for rideshare vehicles compared with private passenger vehicles reflects higher assessed risk due to some commercial activity occurring,” Ms Holmes said.
“The arrival of rideshare into the ACT created a new market dynamic, so to ensure that there is equity in the treatment of all operators, a review of the hire car and taxi premiums was undertaken by CTP insurers to compare with rideshare premiums.”
Analysis included the risks of personal injury arising from motor accidents involving rideshare, general hire cars and taxis. The extent of the commercial activity being undertaken; the consequential time spent on the road; and the frequency and average cost of motor accident claims are key reasons for the variation that exists in the premiums between these CTP motor vehicle classes.
“The higher risk is reflected in premiums set by the insurers such as is the case with taxis, where claims costs have been historically high,” Ms Holmes added. “Notwithstanding this, lower taxi premiums have flowed from last year’s Taxi Industry Innovation Review (TIIR), with CTP premiums for the Suncorp Insurance brands falling by as much as 13.1 per cent.”
All new rideshare operators commencing on or after April 1 will have to change premium class and pay the additional applicable premium for the balance of their registration period.
Existing rideshare operators up to 1 April 2016 who have been able to remain in the passenger vehicle class on an interim basis, will need to change to the CTP rideshare class and pay the higher premium when their registration falls due.
The vehicle class changes for new and existing rideshare operators will need to be undertaken at an Access Canberra shopfront.
Approval of all of the new premiums by the CTP Regulator follows an extensive actuarial review process. Licensed insurers are required to charge premiums that will fully fund their present and future liabilities under the CTP legislation.
For more information on CTP premiums in the ACT see table at Attachment A or visit http://apps.treasury.act.gov.au/compulsorytpi/premiums
- Statement ends -
Section: ACT Treasury Directorate | Media Releases