Khaw: Uber drivers not allowed to have just basic coverage of third-party liability risks

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In response to a Parliamentary Questions on what measures are in place to ensure that private-hire car drivers including Uber drivers have adequate insurance coverage to cover injuries and damage to passengers, road users and private property, Transport Minister Khaw Boon Wan said:

“The Motor Vehicles (Third-Party Risks and Compensation) Act requires all motor vehicles, including private hire cars, to be insured against third-party liability risks. These include death or bodily injury to passengers and other road users. In addition, private hire cars are required to procure insurance that covers the use of the vehicle for hire and reward purposes, which is more than the basic coverage of third-party liability risks required of vehicles in general. This means that passengers in a private hire car who are involved in a motor accident can claim compensation from the owner of the private hire car or its insurer.

It is an offence to use or permit a person to use a vehicle without the appropriate insurance. Those convicted are liable to a fine not exceeding $1,000, or imprisonment for a term not exceeding three months, or both. The driver will also be disqualified from holding or obtaining a driving licence for 12 months from the date of conviction.”