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11. Related to insurance

Section 4(1) of the Motor Vehicles Insurance (Third Party Risks) Ordinance (Cap.272 of the Laws of Hong Kong) expressly specifies that “it shall not be lawful for any person to use, or to cause or permit any other person to use, a motor vehicle on a road unless there is in force in relation to the user of the vehicle by that person or that other person, as the case may be, such a policy of insurance or such a security in respect of third party risks as complies with the requirements of this Ordinance”.


The statutory maximum penalty for this offence, as stated under section 4(2)(a) of the same Ordinance, is a fine of $10,000, imprisonment for 12 months and disqualification for at least 12 months and at most 3 years.


The rationale for compulsory insurance is simple: if a person is injured by a motor vehicle but the driver of that vehicle does not have the financial means to pay the damages, the injured person would be left in a dire and helpless condition. Trying to make sure that all vehicles running on the road are covered by compulsory insurance offers a solution to this problem.