TCSA letter regarding ride sharing enjoying private car costs

With permission from Kon Fourtounis of the TCSA, I am forwarding an important letter that he has written on behalf us all alerting CTP insurer Allianz to Uber cars being on private Registration rates, there will be another three similar letters going out to AAMI, QBE and SGIC, the other Government selected CTP insurers.

Some people are not aware of the constant good work the TCSA are doing on behalf of the taxi industry in SA. This is just one example, they are also constantly informing the Minister & DPTI of the illegal operations of ride sharing services plus much more.

Please let us all come together and stand united to be a part of the Taxi Industry in SA by being a member of the TCSA.

“UNITED WE WILL SURVIVE – DIVIDED WE WILL FALL”

TAXI COUNCIL SOUTH AUSTRALIA INC
(ABN 29 880 259 172)
PO Box 635, MARLESTON SA 5033
PHONE 08 8301 8400
FACSIMILE 08 8293 6300
Email: admin@taxicouncilsa.com.au
“Promoting a Professional Taxi Industry”
____________________________________________________________________________________
14thDecember 2016

Paul Martin
National Manager
Allianz Australia
Adelaide SA 5000

Email: sactpclaims@allianz.com.au

Dear Mr. Martin

As one of the selected Insurers for processing CTP claims in South Australia you would be aware that when car owners buy Registration and CTP two very important questionsin regards to Insurance Details are placed before the purchaser.

The first, where in South Australia will the vehicle be garaged, kept or operatedis to determine the Insurance Rating District. The second question, will the vehicle be used for hire, fare or reward is to determine the Premium Class and amount to be paid.

These questions are found on FORM MR1 as issued by the Department of Planning Transport and Infrastructure (DPTI) and the Premium Class number categories are listed on the MR85 CTP INSURANCE PREMIUM SCHEDULE Effective 1 July 2016 (both forms are attached).

MR1 also points out to the applicant that it is an offence punishable by imprisonment to make a false or misleading statement.

The CTP SCHEDULE allocates Premium Class 5 for all taxis (high kilometer and two annual safety inspections) and Premium Class 7 for all other hire car/chauffer cars carrying passengers for fare (low kilometers and one annual safety inspection).

On the 1 July 2016, the State Government also introduced rideshare vehicles into the hire car category (lower kilometers and one annual safety inspection) and since they are a small passenger vehicle used for hire and reward they would also attract a Class 7 premium.

Under Section 124 of the Motor Vehicles Act 1959 the insurer may seek a penalty, the differential of the premium and recourse via the court system in respect of a liability incurred, if the vehicle is used for a purpose other than stated in the application.

The Taxi Council SA has received in the last five months over 700 reports from industry members, contractors and employees of suspected rideshare vehicles conducting passenger services for hire and reward.

None of the vehicles reported have the necessary Accreditation signage (inspection label and rear plate blue medallion stickers) as described in the new Regulations announced by the Government in July. These reports have been forwarded to DPTI and the Minister of Transport’s office to highlight the breaches of the current rules.

The absence of thisvital Accreditation signage means that is highly probablethat suspected rideshare vehicle owners would have not answered the two relevant questionsappropriately and insurerslike yourself are not matching the premium to the cover extended.

As I am certain you are aware, the more kilometers covered the higher the incidence of road crashes and any subsequent recovery actions will add needlesslymore costs to your operations. Respectfully, we think it would be more prudent to insist on the appropriate premiums right from the outset rather than waiting for a possible event to occur.

If you require any further information do not hesitate to contact us anytime.

Your Sincerely
Kon Fourtounis
Acting CEO
Taxi Council SA

Member of Brand SA and SA Tourism Industry Council