4 July 2018
NT ride-hail drivers should check their motor vehicle insurance
With a well-known ride-hail company starting up in Darwin and Palmerston next month, the Insurance Council of Australia is urging motorists to check their motor vehicle insurance policies before signing up as drivers.
ICA General Manager Communications Campbell Fuller said comprehensive and third party property motor insurance policies did not automatically cover drivers for ride hailing services.
“Most insurers regard using a private car for ride-hailing services as a commercial use of a motor vehicle,” Mr Fuller said.
“If you are already providing a ride-hail service in the Northern Territory, or are considering signing up as a driver, you should check with your insurer to see if you are covered.
“Most policies exclude the use of a private vehicle for taxi or car-hire style services, though some motor vehicle policies may cover these services under strict conditions.
“A ride-hail driver involved in a collision who is not appropriately insured risks having their insurance claim denied, and this could expose them to debts of tens of thousands of dollars.
“NT ride-hail drivers should contact their insurance company to find out if their policy is appropriate, or talk to an insurance broker.”