The Government has reminded people who intend to use a hire car service that they should enquire with the service operator or inspect the private car to ascertain whether a hire car permit has been issued.
In response to a media report published today on insurance issues relating to Uber, the Government reiterated in a statement that private cars without hire car permits that are used to carry passengers for hire or reward will not have an insurance policy or similar security in respect of third party risks as is required by law.
"Any person or organisation who arranges private cars for the carriage of passengers for hire or reward through any means, including the use of mobile applications, should ensure those private cars have obtained hire car permits and have met relevant laws and permit conditions," the statement added.
The permit has to be displayed on the car's windscreen and passengers should check the permit's validity before the journey starts.
The Government warned that offenders are liable to a $5,000 fine and three months' imprisonment for a first conviction, and a $10,000 fine and six months' jail for a second or subsequent conviction.
Those who use a motor vehicle without a valid third party insurance policy are liable to penalties including a $10,000 fine, 12 months' imprisonment, and a driving license suspension of between 12 months to three-years.
