Written Reply by Minister for Transport Khaw Boon Wan to Parliamentary Question on Recourse of Accidents involving Taxis and PHCs used for Courier Services

Mr Ang Hin Kee asked the Minister for Transport 

a.     what recourse do pedestrians and motorists have in accidents involving

     i.   private cars that bear only non-commercial use insurance

     ii.  private-hire vehicles and taxis doing courier service delivery; and 

b.     what actions will be taken when apps operators conduct themselves in violation of regulations.

Reply by Minister for Transport Khaw Boon Wan:

1.     The Motor Vehicles (Third Party Risks and Compensation) Act requires all motor vehicles, whether private cars, private-hire cars (PHCs) or taxis, to be insured against third-party claims on injury and death. Drivers must thus ensure that their motor insurance policies provide the appropriate coverage taking into account the intended use of the vehicle. Drivers who contravene this requirement can be fined up to $1,000 and/or be imprisoned for up to 3 months. They may also be disqualified from holding or obtaining a driving license for 12 months from the date of conviction. 

2.     In the event of accidents involving vehicles which do not have the required insurance coverage, the victim may initiate civil proceedings against the other party.  

3.     In addition, PHCs and taxis are prohibited from being used for the conveyance of goods for reward without LTA’s approval. PHC and taxi drivers who accept such jobs may have their vocational licences revoked. 

4.     PHC booking service operators (BSOs) are required under the Road Traffic Act to ensure that only licensed and appropriately insured drivers and cars are deployed on their platforms. Errant BSOs are liable for warnings, fines, and in egregious cases, a General Suspension Order.