7 April 2016

Point-to-Point Review State Insurance Regulatory Authority Level 25, 580 George Street SYDNEY NSW 2000

Email: P2PReview@sira.nsw.gov.au

Dear Sir/Madam,

Thank you for the opportunity to provide feedback to the State Insurance Regulatory Authority (SIRA) concerning the ‘Review of Compulsory Third Party (CTP) motor vehicle insurance for point-to-point transport vehicles’, with submissions closing on 8 April 2016.

The Motor Traders’ Association of New South Wales (MTA) is the largest employer automotive organisation in New South Wales. MTA’s membership primarily consists of businesses operating in the retail motor industry. In particular, these businesses trade as new and used motor dealers, automotive repairers, smash repairers, service stations and a variety of specialist sectors of the industry.

This submission is written on behalf of our members whom own and operate hire car and chauffer driven limousine businesses and believe that market driven solutions always deliver a better outcome for consumers.

Please find the following responses to the 6 insurance options for point-to-point vehicles presented in the discussion paper, and the MTA preferred option:

Option 1: Creation of a new vehicle class for ride-share services

MTA members have indicated that Option 1 is the preferred option - that a new vehicle class for ride-share services should be established. Currently, the taxis or hire cars classes have been previously assessed for their premiums. To ensure a level playing field, the ride-share services need to have a separate ride-share vehicle classification to be assessed on its own merit. An alternative is that ride-share services are placed in the same category as taxis, as their mode of work is realistically similar to a taxi service by another name.

In order to address some of the challenges of a new vehicle class for ride-sharing services, the following recommendations are proposed:

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