The state's peak motoring body says it is surprised the New South Wales Roads and Maritime Services (RMS) has cracked down on Uber drivers before a review into the taxi industry was complete.

The RMS this week put Uber on notice issuing 40 suspension tickets against offending drivers.

RMS Director of Safety and Compliance Peter Wells said the services were illegal and the Government was taking action against those who allowed their vehicles to be used for ride-sharing.

But NRMA Insurance's Mariana Cidade said she felt the sharing economy was here to stay and thought the Government would wait until its independent taskforce examining the future of the taxi and hire car industry made its recommendations before moving on drivers.

"So currently there is a review of point-to-point ride sharing in NSW and we were surprised that Roads and Maritime took this action before the taskforce provided its recommendation to the Government," she said.

NRMA Insurance's parent company, the Insurance Australia Group, has also put in a submission to the taskforce which is due to report back to the Government next month.

Ms Cidade said insurance companies need to adapt to the changing nature of transport services.

"Ride-sharing is relatively new in Australia and customer needs and behaviours are changing and so is insurance," she said.

"Our number one priority is to protect customers when they need us and that includes customers who occasionally want to use their own cars as UberX vehicles.

"We are supportive of clarity and consistency in the regulatory treatment of emerging alternative business modules because that's good for the business providers and it's good for the customers."

An Uber spokesperson said yesterday the RMS was denying drivers due process and the company is reviewing its legal options to reverse the decision.

"The people of Sydney are choosing Uber in their hundreds of thousands and we look forward to seeing the Government recognise this by putting sensible ride-sharing regulations in place as quickly as possible," the spokesperson said.

In a statement, The NSW Taxi Council welcomed the announcement by RMS that it would enforce the law to crack down on illegal ride-sharing.

NSW Premier Mike Baird said until the review was completed everyone in the industry would need to abide by the current laws.