NSW CTP Taxi Reforms
Since 1 April 2018, taxi owners have had the choice to pay their CTP premium either as an upfront annual premium or in instalment amounts.
Instalment payments are calculated based on the actual number of kilometres travelled during the period of insurance whereas the upfront annual premium is based on the estimated average number of kilometres travelled by a taxi in a year.
Want to pay your annual CTP premium upfront?
If you would like to continue to pay your CTP premium upfront as you have always done, there are no changes to the process. You may either renew your existing policy with Allianz or through your taxi broker or purchase a new policy. You will only be required to make one payment each year. Your premium will be based on an estimate of the average number of kilometres travelled by a taxi in a year.
How do you opt to pay your premium by instalments?
To be eligible to pay your CTP premium in instalments, you must do the following no more than 28 days prior to the commencement of your registration period:
- Have your vehicle inspected at an Authorised Inspection Station (AIS)
- Ensure that the AIS has access to enter your vehicle’s odometer reading on the SIRA portal at the time they perform the inspection
Once the above two actions have been completed, only then can your taxi broker or service provider call/ email us to purchase an instalment-based CTP policy. Your first instalment will be equal to one-third of the upfront annual premium.
Failure to complete your inspection and have your vehicle’s odometer reading entered into the SIRA portal will mean that you will not be eligible to pay by instalments and you will instead be charged the full upfront annual premium.
How do subsequent instalment payments work?
If your vehicle is a T-plated taxi, you will be required to have your vehicle inspected and your odometer recorded again in the SIRA portal four months after the start of your policy period.
Allianz will send you an invoice for your second instalment which will, again, be for one third of the upfront annual premium. Receipt of this invoice will serve as a reminder for you to get your odometer read. Your odometer must be recorded no more than 28 days prior to the due date of this second instalment. You will be given approximately three weeks to pay this instalment.
Once you have had your odometer reading recorded in the SIRA portal, Allianz will determine how many kilometres were travelled by your vehicle in the previous four months and, from this, calculate whether any additional premium is owing or whether a refund is owed to you. Approximately two weeks after the due date of your second instalment payment, Allianz will send you an adjustment notice. If additional premium is owing, you will have 2 weeks to pay.
Eight months from your policy inception date you will be required to repeat this process and have your vehicle inspected and your odometer recorded in the portal. Again, this must occur no more than 28 days prior to the due date of the third instalment. You will receive an invoice for your third instalment payment that will again be one-third of the upfront annual premium and you will have three weeks to make payment.
Again, two weeks after your instalment payment and odometer reading is due, Allianz will send you an adjustment notice depending on how many kilometres your vehicle travelled. You will have 2 weeks to pay any additional premium that is due.
Your final vehicle inspection and odometer reading will be required to be made no more than 28 days prior to the expiry of your annual registration period. A final adjustment will be made to your premium based on this odometer reading. You will then have the option of commencing a new period of insurance on an instalment basis or you can switch to an upfront annual premium.
For TC-plated taxis, the process is the same except there are only two instalment payments made. One at the inception of the policy and another six months after the commencement of the policy
How are instalments and adjustment premiums calculated?
The premium paid by a taxi owner that chooses to opt in to instalment payments depends on the actual number of kilometres travelled by their taxi during the period of insurance. The total premium paid comprises a small fixed upfront component that includes the annual Fund levy plus a cents per kilometre charge which is set by the Regulator. This charge is different for T-plated and TC-plated taxis. For more information about how premiums are calculated please click here.