Uber gets backing of Hong Kong insurers – so long as government gives car-hailing apps the green light
Hong Kong’s insurance industry says it is willing to provide coverage for Uber and similar car-hiring platforms so long as such services are deemed legal by the government.
But the federation added that if such car-hiring services remained illegal, the motor third party liability and motor property damage cover for this kind of activity would also be rendered invalid.
The statement comes a week after police raided Uber’s offices in Cheung Sha Wan Road and arrested several of its drivers for allegedly operating without a hire-car permit and driving without proper insurance. Uber has insisted all rides are covered by insurance. The city’s police chief has warned of a further crackdown on the car-hailing service.
“The insurance industry is highly responsive to any new demand from the market, in particular those required by the law,” the statement read. “Relevant insurance coverage will be made available to help customers meet their insurance needs.”
It cited legislation for third party liability insurance for building owners’ corporations, which went into force in January 2011. By November 2010, the industry had already provided coverage for 95 per cent of buildings with owners’ corporations.
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“If such hiring service is legalised by the government, we as service providers will provide coverage in accordance with the terms and conditions of the appropriate [or] relevant insurance policies,” the federation said.
“Since using a private car to carry passengers for hire or reward without a proper permit is illegal, insured coverage for motor third-party liability insurance will be invalidated and a claim arising from an accident can be denied.”
By law, all motorists are required to carry third-party liability insurance pertaining to bodily injury and death, with a minimum policy of HK$100 million. This is to ensure at-fault motorists have the financial ability to compensate victims injured in a traffic accident.
Under the road traffic ordinance, motorists are also not allowed to drive or use a private car to transport passengers for hire or reward without a valid permit.
The government reiterated yesterday that private cars without hire car permits but used for the carriage of passengers for hire or reward did not have proper insurance that complied with the law.
“Members of the public who intend to use a hire car service should enquire with the service operator or inspect the private car concerned to ascertain whether a hire car permit has been issued to the private car, and check the permit’s validity before the journey starts,” a government spokesman said.
On Monday, Hong Kong justice secretary Rimsky Yuen Kwok-keung said there should be “legal space” for Uber to continue to operate in the city.
More than 50,000 people have signed an online petition by Uber Hong Kong supporting the car-hailing app in the wake of the police crackdown.
