An insurance-sector representative on Friday said extending the current third-party liability to include commercial use in coverage for private vehicle owners would be the most feasible move when the regulatory regime on ride-hailing services comes into effect on August 3.

The comments by Federation of Insurers chief executive Selina Lau came a day after lawmakers completed scrutinising subsidiary legislation to regulate ride-hailing services, with the first batch of licences to be issued by late November.

Speaking on an RTHK programme, she said extending coverage to third-party liabilities would be easiest when it comes time for a driver to file an insurance claim.

"Private vehicle owners are already required under the law to purchase third-party liability insurance," Lau said.

"So if we extend the existing one to cover commercial use, which means the car can be used for ride-hailing, we think that will bring about a seamless integration that makes operations smoother.

"This is because there would not be a period when a car would lose insurance coverage."

Lau said other methods, such as having ride-hailing platforms purchase insurance for drivers or an additional commercial vehicle insurance plan, would create more legal grey areas and therefore delay claim payments.

She said this is due to insurance companies having to sort out which plan will cover a claim when an accident occurs, given that there are too many plans in play at the same time.


Edited by Edmond Fong