CTP for taxis and hire vehicles in the point to point industry

We are seeking feedback from insurers, people involved in providing passenger services, and other interested stakeholders on the proposed Compulsory Third Party (CTP) solution for taxis and hire vehicles in the point to point (P2P) industry.

The proposed principles-based solution:

• Allows insurers greater flexibility and autonomy to tailor CTP premiums to the needs of different parts of the P2P industry.
• Enables fairer pricing of premiums through tailored agreements that accurately reflect the risk that policy holders’ vehicles bring to the scheme.
• Enables insurers and the P2P industry to negotiate information sharing and how premiums are paid.

Insurers would be encouraged to develop innovative pricing methods, as SIRA maintains regulatory control to ensure premiums are fair and affordable.

Submissions are asked to answer the following questions:

1. How would the proposed solution affect your organisation and how is your organisation planning to implement the proposed solution?
2. How would your organisation be impacted by the 100,000 trips/year threshold? Should this threshold be higher or lower, and why?
3. If a policy holder would like to pay a fixed annual premium and they work for a small service provider that has a negotiated agreement with insurers, what arrangement would your organisation see as appropriate?
4. How would the proposed solution affect your infrastructure and/or operating costs? SIRA would appreciate any detailed breakdown or analysis you could provide.
5. Are there any areas of the CTP scheme, premium determinations, legislation or otherwise that you would like to learn more about to support your position?
6. Any other feedback or comments?

Next steps

Interested organisations and individuals are invited to send a submission on the proposed solution in this consultation paper to [email protected] by 5pm, Monday 15 March 2021.

Findings from this consultation will be used to refine the proposed solution, draft requirements, and implementation approach.

Please send any inquiries about the consultation process to [email protected]