- with Senior Company Executives, HR and Finance and Tax Executives
- with readers working within the Insurance and Law Firm industries
E-bikes and e-scooters are becoming an increasingly common sight on Australian roads, footpaths and shared pathways. Offering a practical and environmentally friendly way to travel they have become particularly popular for short trips and commuting. As their popularity has increased, so too has the number of accidents involving riders, pedestrians and other road users.
For those injured in these accidents, obtaining compensation can be far more complicated than for a traditional motor vehicle accident. Recent legislative developments and growing concerns about insurance coverage have highlighted significant gaps in the current compensation framework.
The growing popularity of micromobility devices
E-bikes and e-scooters form part of a broader category of transport known as “micromobility” devices. While these devices provide greater mobility and convenience, they also present new safety challenges.
The insurance problem
One of the most significant challenges facing people injured in e-bike or e-scooter accidents is the lack of a compulsory insurance scheme.
When someone is injured in a conventional motor vehicle accident, compensation will be available through the compulsory third party (CTP) insurance scheme. Most privately owned e-bikes and e-scooters are not covered by compulsory insurance, leaving injured people with fewer options for compensation. It is possible that some riders of e-mobility devices may be covered by other forms of non-compulsory insurance such as home and contents insurance taken out by a household but this offers no assurances
Until reforms occur, many people injured by e-bike or e-scooter riders may need to pursue claims directly against the individuals responsible, which can be time-consuming and difficult if the person at fault has limited financial resources and/or no insurance cover.
New laws affecting e-bikes and e-scooters
In late 2025, the NSW Parliament passed the Road Transport and Other Legislation Amendment (Micromobility and Smartcards) Act 2025. The legislation is intended to create a framework for regulating shared micromobility services and to clarify how the existing motor accident laws apply to e-bikes and e-scooters.
Although many of these have yet to commence, the legislation contains several important changes.
First, operators of shared micromobility services, such as e-bike and e-scooter hire schemes, will require approvals from Transport for NSW and relevant local authorities.
Secondly, the legislation clarifies that the Motor Accident Injuries Act 2017 (NSW) (the Act) does not apply where an accident only involves micromobility vehicles.
Thirdly, the legislation removes the right of action against the Nominal Defendant under the Act where the uninsured vehicle causing injury is a micromobility vehicle.
The Nominal Defendant provides an important safety net for people injured by unidentified or uninsured motor vehicles on roads or road-related areas. Those protections will not extend to accidents involving micromobility vehicles.
These changes reinforce the fact that people injured in e-bike and e-scooter accidents may not have access to the same protections as are available to those involved in a traditional motor vehicle accident.
What this means for injured people
The key takeaway for the public is that accidents involving e-bikes and e-scooters can present unique compensation challenges.
Many people assume that if they are injured by another road user, insurance will automatically cover their losses. Unfortunately, that assumption currently is not likely to be correct when a micromobility device is involved.
Injured people need to establish negligence against the rider, owner, operator or another responsible party with no assurance that there is an available insurer to meet the claim.
This can be particularly concerning where serious injuries occur, including fractures, spinal injuries, head injuries or long-term disabilities.
Safety remains critical
As governments continue to consider regulatory reform and insurance solutions, safety remains the most effective way to reduce harm.
Riders should comply with road rules, wear approved helmets, ensure their devices are properly maintained and remain alert to pedestrians and other road users. Pedestrians should remain vigilant in areas where e-bikes and shared e-scooters are commonly used.
The increasing popularity of these devices means that all road and pathway users need to adapt to a changing transport environment.
Looking ahead
E-bikes and e-scooters are likely to play an increasingly important role in the way people move around cities and towns. However, the law continues to evolve in response to this rapidly developing form of transport.
The growing number of injuries, the absence of compulsory insurance and recent legislative reforms demonstrate that this remains an emerging area of law and public policy.
A Possible Solution
In May 2025 an upper house parliamentary enquiry made recommendations that the NSW Government investigate as a matter of urgency potential settings to create a viable model for e-mobility insurance.
In response to these recommendations the NSW Productivity and Equality Commission has recently conducted a review into the policy options for insurance against risks posed by the use of e-mobility devices. The Commission was due to report to the Minister for Transport on this issue by 31 July 2026. We keenly await the outcome of this review and how it is actioned by the NSW Government.
Anyone injured in an accident involving an e-bike or e-scooter, it is important to seek advice as early as possible to understand their legal rights and options available to them. Early advice can be particularly important where insurance arrangements are unclear or liability is disputed. As this area of the law continues to develop, understanding when compensation may be available can make a significant difference to an injured person’s recovery and financial security.
Disclosure and important note: This article is based on our own legal research and thinking. Some of its content has been drafted with the assistance of artificial intelligence. The authors have checked and approved this article, including the AI generated content, for publication.
This article was published on 17 August 2026 by Carroll & O’Dea Lawyers and is based on the relevant state of the law (legislation, regulations and case law) at that date for the jurisdiction in which it is published. Please note this article does not constitute legal advice.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
[View Source]