Graeme Eggleston of Orange Lions Club, which held the races as it major annual fundraiser, said an accident at the 2019 races meant the club's insurer was no longer willing to provide public liability insurance for the event.

Mr Eggleston did not elaborate on the details of the accident, but did say camels were difficult to steer

"If you don't describe exactly what's involved in a camel race so if something happens, you're not insured," he said.

"They said no more so we said we're out."

Mr Eggleston said the club previously used insurance through a company which covered public liability for all Lions clubs.

But the cheapest quote the club had obtained since was for $25,000.

"We only make $50,000 out of it - it becomes prohibitive," Mr Eggleston said.

"We were disappointed, but we had a good run," he said, noting the club had been able to raise $244,000 for charity.

He said Orange City Council had been in touch with two interested businesses, but both deemed the event too difficult and expensive to organise.

The revelation came after mayor Reg Kidd put forward a motion at Tuesday night's council meeting to investigate how the council might lighten the financial burden for community organisations hosting charity events.

"There's so many activities going by the way because insurance is over the top," Cr Kidd said.

He said the Emu Roadrunner Charity Bike Ride was another event to fold.