New CTP insurance deal for the point-to-point transport industry

16 December 2022

SIRA has developed new CTP guidelines to give taxis and ride share vehicles in the point-to-point transport industry greater flexibility in how they pay their premiums.

The Motor Accident Guidelines: Determination for Taxis and Hire Vehicles will come into effect from 1 July 2023 providing a new premium-setting framework. They replace the current transitional arrangements.

Under the guidelines, the minimum CTP premium for taxis will be the equivalent of the premiums for Class 1 vehicles – the type of cars that rideshare operators and most people drive every day.

The changes will bring taxis into line with hire and rideshare operators who collect a distance-based premium from their customer as part of the fare.

The new guidelines will also deliver flexibility for insurers to tailor CTP premiums in line with the different needs and risk levels within the point-to-point industry.

The guidelines were developed after SIRA’s ongoing consultations with the industry and key stakeholders.

These consultations resulted in the guidelines covering other issues including clarification of the roles and responsibilities of the insurer, service provider and operator, and transparency around SIRA’s regulatory powers in the monitoring of premium collection.

SIRA will work closely with insurers and authorised serviced providers to support and monitor the implementation of these new arrangements.