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Insurance and commercial passenger vehicle services

Is third party property damage (TPPD) insurance compulsory for all commercial passenger vehicles?

Third party property damage insurance is compulsory if the vehicle owner is party to a driver agreement.

If a driver agreement is in place between the vehicle owner and a driver or drivers, the vehicle owner must maintain one or more policies of insurance providing cover of at least $5,000,000 for each vehicle. The policies must be issued by a corporation authorised under the Insurance Act 1973 (Cth) to carry on an insurance business and be held in the vehicle owner’s name.

If the vehicle owner is not party to a driver agreement, third party property damage insurance is not required by law, however it is highly recommended that vehicle owners have insurance appropriate to the type of service they provide. For example, some insurers have insurance specific to commercial passenger vehicle services.

Am I insured for personal injury when travelling in a CPV?

Yes, you are always covered for personal injury through the Transport Accident Commission. Information about making claims through the TAC can be found on the TAC website.

Are my possessions covered for damage, loss or theft when I travel in a CPV?

Property coverage will depend on the type of insurance your service provider has. If you’re unsure, check with your preferred booking service provider before booking.

How do I make a claim?

Always ask for your receipt as this will include the information about your trip. Contact the relevant booking service provider and let them know you’ve been in an accident. They will advise you what to do next. Booking service provider contact details are available on CPVV’s public register.

As a vehicle owner, what else should I be considering when making enquiries about insurance?

You should always make sure you are receiving the insurance policy or product that you pay for, and is appropriate to your business needs. We strongly encourage you to seek further advice including from your booking service provider if you’re not sure about insurance products available.

If you drive somebody else’s vehicle to provide commercial passenger vehicle services, make sure you have a driver agreement in place. In this scenario, the vehicle owner must have third party property damage insurance as referred to above.

If you have a complaint about the insurance product you receive, you can contact the Australian Financial Complaints Authority.