Mr Phillip Tan Fong Lip rightly noted that for private vehicles to be deployed during public transport disruptions to offer rides for a fee, proper insurance cover must be considered ("Allow car owners to offer services during disruptions"; Thursday).

Motorists' private car insurance policies have a "limitation to use" condition, which restricts usage to social, domestic and pleasure purposes.

However, insurers will consider their policyholders' requests to broaden their policies to cover "hire and reward" usage, which is essential for drivers who transport people or property in exchange for a fee. The risk will be assessed on a case-by-case basis, depending on seating capacity and other factors.

There have been several initiatives to promote car-sharing and the use of private vehicles for commercial transport purposes.

The General Insurance Association of Singapore urges motorists who wish to offer such services to inform their motor insurers to include coverage for "hire and reward", so that they are adequately indemnified in the event of a motor accident.

Derek Teo

Executive Director, General Insurance Association of Singapore