OHS Awareness NSW Taxi Operators - NSW Taxi Industry

Step 3: Manage Workers Compensation Claims
Workers Compensation Insurance
As a Taxi Operator you must by law have current Worker’s Compensation Insurance for all
your Taxi Drivers and for any employees, such as office workers/mechanics/cleaners, you
may have. If you don’t have Insurance and your driver or any employee is killed or injured
you can be responsible for payment of extremely large sums of money which may run into
millions of dollars.
If you are self employed you are not required to have, and cannot obtain, Worker’s
Compensation Insurance for yourself. However if your organisation is a company and it
pays you wages then your company must have Worker’s Compensation Insurance for
yourself.
There are two methods of calculating the cost of this insurance to cover taxi drivers using
your taxis: 1). On a per plate per year basis, or 2). Pro Rata basis.
1). On a per plate per year basis
In general terms, a flat fee per year applies to each taxi plate that is driven by a taxi
driver(s) for more than an average of 2 shifts per week.
2). Pro Rata basis (% of flat fee)
A pro rata fee per annum applies to each taxi plate that is driven by a taxi driver(s) for up
to a maximum average of 2 shifts per week. This only applies to Taxi Operators who are
sole traders, not to companies. WorkCover will check your application for this type of
payment. (If in doubt of your eligibility for pro rata premiums, discuss with your insurer).
You must notify your insurer if you exceed the average 2 shifts per week and your policy
will be amended.
For employees other than Taxi Drivers you will have their Worker’s Compensation
Insurance calculated on their wages.
Your insurance company will give you full details of Workers Compensation Insurance
policies and procedures. Your taxi operation must be covered as appropriate by this
insurance. You must keep payments up to date
OHS Awareness for NSW Taxi Operators: Information Guide
NSW Taxi Industry Association Page 13