NSW review knocks back mandatory e-bike insurance, backs education instead
The NSW Productivity and Equality Commission has told the state government not to make e-bike insurance compulsory. In a report released 26 August 2026, the Commission found that education and enforcement measures would deliver a $55 million net benefit to NSW, while mandatory insurance schemes for e-bikes and other e-micromobility devices would cost the community between $470 million and $1 billion more than they return.
What the review looked at
The Minister for Transport asked the Commission to review insurance settings after a 2024 parliamentary inquiry recommended NSW investigate a compulsory insurance model for e-bike owners and riders. The Commission modelled three insurance options (from catastrophic third party cover through to combined third party and personal injury cover) against measures like expanded education, device certification and a registration fee.
It found e-bikes have a risk profile broadly similar to ordinary bicycles, that most seriously injured riders already have access to existing safety nets (the health system, welfare, civil liability, and compulsory third party cover where a car is involved), and that the real problems are illegal and modified devices and unsafe riding behaviour, none of which an insurance scheme would fix.
Industry reaction
Bicycle NSW backed the finding, calling it "a big win" for members who ride a legal e-bike safely, and noting the report builds on the government's e-mobility reforms since 2024. The Commission is still pushing NSW to tighten enforcement against illegal devices, improve data collection that currently lumps modified and compliant e-bikes together, and lobby the federal government to stop non-compliant devices being imported.
What it means for buyers
If you are shopping for a legal, EN 15194 compliant e-bike in NSW, this changes nothing about how you buy or use it today. It does confirm the state is not about to load a compulsory insurance cost onto legitimate riders, and it puts the policy focus squarely on illegal, throttle-heavy devices rather than compliant pedelecs. If you want peace of mind anyway, personal accident and public liability cover through a cycling body remains optional, cheap, and separate from any bike purchase decision. Worth weighing up alongside the compliant models you can compare on BikeFinder before you buy.