A scheme to help fund jockeys' expensive insurance premiums has been backed by racing's governing body, with their union labelling it "a monumental day for racing".The Australian Racing Board (ARB) on Thursday voted to implement the national scheme that will divert one per cent of prizemoney to a welfare fund for jockeys.The fund will pay for personal accident, death and disability insurance, public liability insurance, as well as contributing funds to the jockeys' welfare when they retire from

A scheme to help fund jockeys' expensive insurance premiums has been backed by racing's governing body, with their union labelling it "a monumental day for racing".

The Australian Racing Board (ARB) on Thursday voted to implement the national scheme that will divert one per cent of prizemoney to a welfare fund for jockeys.

The fund will pay for personal accident, death and disability insurance, public liability insurance, as well as contributing funds to the jockeys' welfare when they retire from the track.

The scheme received in-principle support from the ARB in December, but the Australian Jockeys' Association (AJA) had been concerned different state representatives on the racing board may block its introduction.

The union had hinted jockeys would strike if the board failed to back the scheme at Thursday's meeting.

AJA chairman Ross Inglis described the board's decision as historic, saying it would give jockeys "real security for the future".

"It's certainly a monumental day for racing," he told reporters in Sydney.

"What this does is it gives riders security in the future from a financial point of view ...

"We have lost jockey numbers over the last 10 years by about 50 per cent, so we think this goes a long way to arresting that issue."

The scheme will come into effect on July 31.

The ARB also voted to introduce padded whips after pressure from animal rights activists to ban the use of whips altogether.

From August 1, jockeys across Australia will have to use the padded whips.

New rules will also be introduced to curb "excessive use" of the whips.

The decision put the Australian racing industry on a par with other countries and their animal welfare protections, ARB chairman Bob Bentley said.

"It shows that the industry understands the responsibility they have to animals ... and that the industry can coexist with looking after our animals," he said.

But the AJA harbours concerns about the new whip rules, saying interpretations would vary as to what constituted "excessive use" - both within the racing industry and among punters.

"I don't think padded whips will be a major issue. What will need to be worked through is the issue of use," Inglis said.

"(There) is a question of interpretation and what one person considers to be excessive use of whips another person may not.

"The hardcore punting public has the perception that if a horse is there to win a race, then the jockey has got to do everything to win the race."

However, he was confident the new whip rules could be introduced by August.

"We've got several months (to work through the interpretations) ... and I'm confident that can be done," he said.