Target Market Determination

Target Market Determination

Comprehensive Cover and Third Party Property Damage Cover

Introduction

This Target Market Determination (TMD) has been prepared by Sharedfare Pty Ltd ACN 690 770 855 (Sharedfare) for and on behalf of Shared Fare Mutual Ltd ACN 695 717 796 (Mutual). This TMD is current as at 8 July 2026 and relates to the comprehensive motor vehicle cover and third party property damage cover issued by the Mutual (Protection).

This TMD is designed to help the members of the Mutual (Members) and Sharedfare representatives and staff understand the class of customers for whom the Protection is most suitable (target market). References to we, us or our in this document mean the Mutual as the product issuer and Sharedfare as the entity responsible for offering the Protection to Members.

This TMD describes:

• Who the product is suitable for (target market) and who it is not suitable for;
• How the product will be distributed to Members;
• How often we will review this TMD and when the next review will occur;
• What events or circumstances may trigger a review of this TMD;
• The information that we need, to decide if the TMD is no longer appropriate; and
• Our reporting obligations for this TMD.

The TMD is not intended to provide financial advice and does not form part of the terms of the Protection. In addition to the key eligibility requirements outlined in this TMD, the Protection is subject to acceptance criteria as determined by us from time to time.

When making a decision about whether to purchase the Protection, please review the product's Product Disclosure Statement and Protection Wording (PDS). The Mutual's Constitution contains important information about the rights of Members, including their right to have their claim considered by the Mutual's Board, and the PDS explains the way that discretionary mutual risk protection works. Please use the PDS to understand the meaning of any capitalised terms used in this TMD which are not defined in this document.

Effective date and operation of TMD

The effective date of this TMD is 8 July 2026 (Effective Date). The TMD will apply to all Protections sold to Members on or after the Effective Date. The TMD applies until it is replaced or withdrawn. We may review this TMD at any time.

Product description and target market

Product description

The Protection offers two levels of protection so Members can choose which of the two cover options is best suited to their circumstances.

Comprehensive property damage cover: When you purchase this option, both Section 1 and 2 of the PDS will apply. Comprehensive property damage cover protects a Member's liability for Damage caused by their Vehicle to other people's property and liability for compensation for death or bodily injury of another person. It also provides protection for Damage to the Member's Vehicle that is caused by an Incident not excluded in the Protection Wording up to its Market Value. Comprehensive property damage cover includes one additional benefit which is automatically included where we have agreed to pay a Member's claim: towing and storage of a Member's Vehicle that is Damaged in a protected Incident.

Third party property damage cover: When you purchase this option, only Section 2 of the PDS will apply. Third party property damage cover protects a Member's liability for Damage caused by their Vehicle to other people's property. It does not provide protection for Damage to the Member's own Vehicle.

Both options described above include additional benefits which are automatically included if we have agreed to pay a Member's claim. These benefits protect a Member for:

• First aid costs;
• Legal costs incurred in relation to a formal enquiry or coroner's inquest or to defend a Member's liability in respect of a vehicle not owned or supplied by the Member;
• Their legal liability for damage to Third Party property caused by a vehicle not owned by the Member;
• Their legal liability for damage to Third Party property caused by the Member driving a Substitute Vehicle;
• Compensation payable by the Member for death or bodily injury sustained to any person resulting from an Incident caused by or arising out of the use of the Member's Vehicle; and
• Damage to their Vehicle if the driver of the other vehicle was at-fault but uninsured.

The Protection is subject to limits and sub-limits, terms, Excesses, conditions and exclusions. The maximum that we will pay in respect of third party property damage for any one Incident or series of Incidents is $30,000,000 (inclusive of defence costs) less any applicable Excess. Refer to the PDS for full details.

Key exclusions include but are not limited to:

• Damage or legal liability from any person who does not hold a valid driver's licence.
• Damage or legal liability caused by any person driving the Vehicle with an illegal amount of alcohol or any drug in their blood (or who refuses to take a test for alcohol, drugs or medication).
• Damage or legal liability if the driver of the Vehicle is under 21 years.
• Damage or legal liability where the Vehicle was carrying Dangerous Goods.
• A failure to take reasonable precautions to prevent Damage or legal liability.
• Damage to personal property.
• Damage caused by any trailers or caravans attached to the Vehicle.
• The Vehicle being used for illegal purposes, racing, sports event, competition or in connection with the motor trade (amongst other uses).
• Damage or legal liability that occurs while the Vehicle is operating or driving in autopilot or Autonomous Vehicle mode.
• Damage that is intentionally caused or liability that is intentionally incurred.
• Pre-existing damage.
• Incorrect fuel usage.
• Depreciation, wear and tear, rust or corrosion, mechanical, structural, electrical, hydraulic or electronic breakdown or failure.
• Fines, penalties, or aggravated, exemplary or punitive damages.
• Any claim resulting from death of or bodily injury to any person driving the Vehicle, their employees or their Family members.
• Death of or bodily injury to any person if the Vehicle is registered in the Northern Territory of Australia.

Target market

The Protection is suitable for people who:

• Are eligible and willing to become a Member;
• Use their vehicle for private or rideshare, taxi or courier business activities (including fleet operators);
• Have properly maintained and serviced their vehicle and whose vehicle meets the registration requirement in their relevant state or territory;
• Have the ability to pay the costs associated with purchasing the Protection, including but not limited to their Contribution, any Excess and any costs above any applicable limits under the terms of Protection or arising from their membership of the Mutual, from their own financial resources.

The Protection is not suitable for people who:

• Are not eligible or willing to become a Member;
• Use their vehicle for purposes other than for their private use or rideshare, courier or taxi purposes (e.g. ordinary business or commercial use);
• Are seeking cover for Damage to their own vehicle or for their liability for Damage to Third Party property caused by incidents that are excluded under the terms of the Protection, such as those described in the Product Description section above;
• Have not properly maintained or serviced their vehicle, or whose vehicle does not meet the applicable registration requirements;
• Would prefer that we, as product issuer, organise the repairs to their Damaged vehicle, or who are not comfortable with a cash payment being the only settlement option under the terms of the Protection;
• Do not have the ability to pay the costs associated with purchasing the Protection, including but not limited to their Contribution, any Excess and any costs above any applicable annual limits or sub-limits under the terms of Protection or arising from their membership of the Mutual, from their own financial resources;
• Already hold other risk products which adequately protect them for their general liability, including insurance, or who prefer not to protect damage to their own vehicle or their legal liability for Third Party property damage with a discretionary mutual risk protection product.

The Protection does not provide Members with a legal right to payment of their claim, and we retain full discretion to pay or decline any claim, considering the interests of the Members. It is not suitable for people who would prefer a contract of insurance.

Likely objectives, financial situation and needs

Objectives

*Comprehensive cover* — Rideshare, taxi, courier, private use drivers and vehicle owners seeking to financially protect themselves against costs relating to Damage to their Vehicle arising from a wide range of protected events such as collision, theft, fire, weather events, or malicious acts. This cover also protects a Member's legal liability to someone else that arises from Damage to that person's property as a result of an Incident (not excluded under the terms and conditions of the Protection) involving the Member's Vehicle.

*Third party property damage cover* — Rideshare, taxi, courier, private use drivers and vehicle owners seeking to financially protect themselves for their legal liability for Damage to someone else's property as a result of an Incident (not excluded under the terms and conditions of the Protection) involving the Member's Vehicle.

Financial situation

People who are likely to experience a financial burden as a consequence of significant costs associated with Damage to their Vehicle, or claims for compensation for at-fault Damage to Third Party property caused by or arising out of the use of their Vehicle, and do not have the resources or desire to 'self-insure' those risks, but have the financial resources to pay for the annual cost of the Protection for the level of protection they selected. They may face financial difficulty if they need to fully pay or finance the cost to repair the Damage caused or their legal liability, but can afford to pay any Excess and Contribution. Having regard to any applicable personal circumstances, vulnerability or hardship considerations, they are able to pay the Contribution and any Excesses in accordance with the chosen level of cover.

Needs

People who are willing to use a discretionary mutual risk protection product, whereby the Members of the Mutual will pool their Contributions and share the risk of claims being made by Members for protection for the duration of their Protection from a number of key risks associated with the use of their Vehicle. People who understand they can improve their buying power and achieve a lower cost of protection by using a discretionary mutual risk protection product instead of insurance, and are willing to have their claims considered at the discretion of the Mutual's Board and in accordance with their rights in the Mutual's Constitution.

Protection is only suitable for a person with the objectives, financial situation and needs described above because:

• It provides protection for the type of loss or damage and/or legal liability that persons in the relevant target market are seeking to be protected against;
• It is designed for private drivers and rideshare, courier and taxi drivers who require protection with the key attributes described above;
• Its pricing structure, including Contribution, is designed to be generally affordable for Members who meet the eligibility criteria;
• Its exclusions and limitations are aligned with the risk profile and expectations of the target market, and are clearly disclosed to support informed decision-making; and
• Its distribution conditions and methods are structured to ensure Protection is only offered to Members whose circumstances are consistent with the TMD.

In selecting the appropriate level of cover, such persons will consider whether they require the highest level of cover (comprehensive cover) or whether a lower level of cover (third party property damage only cover) would be sufficient for their vehicle and therefore is suited to their needs and financial situation. Each person will need to consider whether Protection meets their own objectives, financial situation and needs.

Distribution of this product

This product is distributed by Sharedfare. No one else is permitted to offer this product. As the manager of the Mutual, Sharedfare has distribution conditions in place to help ensure that the Protection is only sold to people in the target market. These conditions include:

• Protection is only available for purchase by persons or entities who meet the eligibility criteria to become a Member and come within the target market set out in this TMD — it is not available to anyone else;
• Representatives of Sharedfare involved in offering to arrange the Protection are appropriately trained, understand the market this product is designed for and how to identify people within and outside of the target market; and
• Internal processes and systems are in place to support the distribution of Protection to people in the target market.

Reviewing this TMD

This TMD will be reviewed no later than one (1) year from the Effective Date. We will then review this TMD every two (2) years to ensure it remains appropriate. When we review the TMD, we will consider information collected by Sharedfare, which includes but is not limited to:

• Eligibility for the Protection;
• Sales information;
• Member information;
• Claims information;
• Feedback and complaints; and
• Cancellation.

Sharedfare must report this information to the Mutual quarterly. We will also review this TMD when a review trigger occurs, as outlined below.

Review triggers

This TMD will be reviewed earlier if any event or circumstance occurs that would reasonably suggest that the target market is no longer appropriate, or this product is no longer consistent with the likely objectives, financial situation and needs of people in the target market. These events or circumstances are called review triggers. A review trigger might be where:

• There is a material change to the eligibility criteria for the Protection;
• There is a material change to this product, including to the benefits, limits or exclusions;
• There is a relevant and significant change or event affecting a reasonable proportion of people in the target market (e.g. a change in law or regulation);
• There are changes to how this product is distributed;
• There is a pattern of complaints or negative feedback relating to the appropriateness of this product for the target market;
• Trends in claims suggest that this product is not performing appropriately for the target market;
• There is a reportable significant dealing in this product;
• Significant changes in other metrics relating to the suitability of the Protection for Members, including but not limited to cancellations of membership and/or the Protection, declining rates of renewal of the Protection, higher incidence of withdrawn or declined claims and increased Member complaints;
• We identify that Sharedfare has been offering or selling the Protection outside of the target market or in a way that does not meet the distribution conditions set out in this TMD;
• There is a material defect in the PDS for the product which reasonably suggests that the TMD is no longer appropriate;
• We become aware of any significant dealings which indicate that the product was sold to someone who is outside of the TMD;
• There is a change in law or regulatory guidance or industry code which may materially affect the terms of Protection or distribution, or regulatory feedback or concerns raised that suggest the TMD may no longer be appropriate; or
• Feedback, orders or directions from a regulator or external dispute resolution body like AFCA suggest this TMD is no longer appropriate.

Sharedfare will also consider whether a review trigger has taken place. If they think an event or occurrence is a review trigger, they must tell us within ten (10) business days. If we decide we have enough information to identify that a review trigger has occurred, we will review this TMD within ten (10) business days of our decision.

Reporting

We record and monitor all complaints that we receive about Protection. Sharedfare must provide written details of any complaint received about this product to us within ten (10) business days after each Complaints Reporting Period, including subject matter and action taken to resolve the complaints. For the purpose of this TMD, each 6-month period from the Effective Date is a Complaints Reporting Period.