The money will be paid by the insurers of cabby Lee Yuet Kong, 68, who caused his death.

The two men had an argument after they were involved in a minor collision on April 9, 2007.

Mr Lim, 30, was driving his girlfriend home when his car and the taxi ran into each other along Paterson Road.

Both motorists pulled over beside Shaw House on Scotts Road and began arguing over the incident.

Mr Lee, who had a passenger in his cab, then got back into his taxi and tried to drive off.

Mr Lim tried to block Mr Lee from driving off by standing in front of the cab. He was hit and flung onto the taxi bonnet when Mr Lee continued to drive forward.

When the cab accelerated and braked abruptly, Mr Lim fell backwards, hitting his head on the road. He went into a coma and died a month later in hospital.

In November 2007, Mr Lee was convicted of causing Mr Lim's death through his reckless behaviour.

In January last year, he was sentenced to a year's jail and banned from driving for the rest of his life. He was released from prison last September.

Mr Lim's parents - Mr Lim Qui Yong, 54, and Madam Tan Wang Ing, 51 - sued Mr Lee for negligence through their lawyer Raj Singh Shergill.

The hearing was scheduled for yesterday but lawyers for both sides reached a settlement by lunch-time.

Mr Lee's insurers, represented by Mr N. K. Rajarh, agreed to pay a total of $150,000 in compensation.

As the insurers had already paid $15,000 several days after Mr Lim's death, his parents will now receive the balance of $135,000.

The parents were in court but declined to speak to the media.