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With ride-sharing company Uber set to launch in Darwin and Palmerston next month, the peak insurance body is urging motorists to check their motor-vehicle insurance policies before they sign up as drivers.
Campbell Fuller, general manager for communications at the Insurance Council of Australia (ICA), said drivers for ride-hailing services are not automatically covered by comprehensive and third-party property motor insurance policies.
“Most insurers regard using a private car for ride-hailing services as a commercial use of a motor vehicle,” 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.”
To find out if their existing policy is appropriate, Fuller said NT ride-hail drivers should contact their insurance company or talk to an insurance broker.
