NSW Slaps Higher Insurance Premium on Uber Taxis


The New South Wales government will slap higher insurance premiums on Uber taxis under a slew of reforms announced by the state.  Innovation Minister of NSW, Victor Dominello, said the government is embarking on a review process of the state’s compulsory third party (CTP) insurance for taxis, hire cars and ride-share services.

Dominello said the review would put an end to the lingering disparity issues among taxis, hire cars and ride-share services with its six option reform plan.

“We need to reconsider how CTP rules and prices are set to ensure greater fairness in the sector,” he said.

The reforms would address the pending anomalies that have placed taxis and hire cars as a separate vehicle class while ride-share services are treated as passenger vehicles.

All Sydney taxis will have to pay higher insurance premium than passenger vehicles, according to the State Insurance Regulatory Authority, reports News Corp.

The options under consideration include placing ride-share services in the same class as taxis and keeping hire cars in a new class of ride-shares. It will also allow insurers to determine the premiums.

Public consultation on the matter will close on April 8 and the government will announce its decision later in 2016.

Meanwhile, female Uber drivers in Australia are feeling delighted at the response they are getting from the passengers. Speaking at an Uber event during the International Women’s Day in Sydney, female Uber driver Helen Owen, told Mashable that she was struck by the response of passengers.

Ellie Rumble said most people when they get in the car just go, ‘woah, you’re my first female Uber driver”.

“Especially women, they get really excited,” she added.

“I actually feel a lot of pride taking care of my young girls,” Rumble noted.

Meanwhile, the Australian consumer watchdog is taking a strong stand against the trend of insurance companies and car dealers fleecing new car owners with hidden insurance products.

The Australian Securities and Investments Commission (ASIC) in a report titled “The Sale of Life Insurance through car dealers; Taking consumers for a ride,” highlighted the plight of customers. It said hidden life insurance policies are sold as part of the sale or finance process, which are expensive than other comparable products.  It urged companies and dealers to observe greater transparency in ‘add-on’ insurance products while financing a new vehicle, reports the website

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