Insurance Coverage Provided by Taxi or Private Hire Vehicle Services Firms

Dr Tan Wu Meng asked the Minister for Transport (a) whether firms providing taxi or private hire vehicle services are required to provide insurance coverage specifically covering damage caused to other vehicles by the actions of passengers; and (b) what recourse is available to vocational drivers facing a potentially ruinous claim arising from third party damage caused by a passenger failing to exercise due diligence despite the driver's advice.

The Motor Vehicles (Third-Party Risks and Compensation) Act requires users of motor vehicles, including taxis and private hire cars (PHCs), to be covered with a valid insurance policy with liability coverage against third-party claims arising from personal injury or death resulting from use of their vehicles on our roads. This includes injury or death due to accidents caused by passengers. Taxi and PHC fleet operators provide insurance coverage for vehicles that are rented out to drivers. Such insurance, generally, includes coverage against third-party vehicle damage.

Drivers who are involved in a third-party claim for property damage caused or contributed by their passengers’ actions can seek independent legal advice for civil recourse. As safety is a shared responsibility, I urge both taxi and PHC drivers and passengers to ensure safety of themselves and others.