4. I am a car owner. Am I bound to purchase third party liability insurance for my car under the law? What are the consequences if I fail to do so?

4. I am a car owner. Am I bound to purchase third party liability insurance for my car under the law? What are the consequences if I fail to do so?

Section 4 of the Motor Vehicles Insurance (Third Party Risks) Ordinance (Cap. 272) requires all users (including a car owner and all permitted users or drivers) to have third party insurance covering the relevant motor vehicle. A car owner should arrange motor insurance for your car.

Any person who fails to purchase motor insurance for your car is liable for a fine of up to HK$10,000 and to an imprisonment of 12 months. The person convicted of the offence may also face a disqualification from driving for a period of between 12 months and 3 years.

In addition, you and the permitted driver(s) would have to bear the civil liability of bodily injury or death caused to any third party by any accident arising out of the use of your car without insurance cover. The potential amount of compensation payable by yourself or the driver could be substantial which may adversely affect your financial status or even results in your bankruptcy or insolvency.