Vehicle insurance will cost taxi drivers triple the amount it costs Uber drivers under pricing recommendations put forward by the Tasmanian Economic Regulator.
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The TER announced its recommended maximum vehicle premiums for the period 2018-2022 in a statement on Thursday, following an investigation into the Motor Accidents Insurance Board’s pricing policies.
The report recommended price increases for six vehicle classes including taxis and small, medium and large motorcycles, and cuts for four vehicle classes including special interest vehicles and tractors.
Ride-sourcing vehicles fall under their own category for the first time, but will still incur the same premiums as a household car due to a lack of data on the risks of operating a ride-sourcing vehicle.
The new category is expected to be re-assessed once more data becomes available.
The Tasmanian Taxi Council welcomed news that Uber vehicles would no longer fall under the Class 1 category, but reaffirmed its belief that ride-sourcing should be classified as a taxi service.
Secretary Tony Dilger disputed claims that taxi-level insurance premiums would make ride-sourcing unviable, pointing out that some Uber drivers worked as many as 60 hours a week.
“(We don’t) see this as an argument when the Federal Supreme Court for purposes of the Taxation Act classified ride-sourcing as a taxi service,” Mr Dilger said.
“Recent media reports stating that ride-sourcing drivers are working 40 to 60 hours per week also make them look like a taxi.
“The Tasmanian Taxi Council would consider that risks for ride-sourcing and taxis would be the same.”
MAIB premiums will be finalised by the state government later this year.
A spokesman said the government would closely consider the TER report before deciding MAIB’s premiums.
“The sharing economy is here to stay and we have struck the right balance with legislation that provides appropriate certainty and protections for the taxi industry while also respecting consumer choice,” he said.