LTA and MOT aim to introduce new Autonomous Vehicles Act within a year, explain how AV accident insurance works today

The Land Transport Authority (LTA) and the Ministry of Transport (MOT) say they aim to introduce a new Autonomous Vehicles (AV) Act in about a year’s time, setting out a fuller legal framework for driverless vehicles on Singapore roads, including how insurance and compensation will work after an accident.

The update came in a joint reply published in The Straits Times Forum on 19 October, signed by Alison Tan, LTA’s Group Director for Technology and Industry Development, and Elaine Koh, MOT’s Senior Director of the Private and Shared Mobility Division. They were responding to a 12 October letter from a reader, Chong Ryh Huei, who asked for clarity on liability insurance for passengers of autonomous vehicles.

The officials explained that AVs on public roads today are regulated under the sandbox set out in the Road Traffic (Autonomous Motor Vehicles) Rules 2017. These rules require authorised operators to maintain liability insurance covering third-party death, bodily injury and property damage caused by, or arising out of the use of, the AVs, including to passengers. Anyone who suffers losses in an accident can claim against that insurance, in the same way as for accidents involving conventional vehicles.

Beyond insurance, LTA requires AV operators to meet safety, cybersecurity and operational requirements, and may take regulatory action if they fall short. The two agencies said they have engaged industry, insurers and legal practitioners on a more holistic framework, including insurance and compensation processes, and will share the views received when ready.

MOT’s public consultation on the framework ran from 4 May to 30 June 2026. According to MOT, it covered four areas: the responsibilities of key players, namely the entity in charge of the AV technology, fleet operators, onboard safety operators and remote operators; compensation and insurance; data and cybersecurity management; and liability when control is handed between human drivers and conditional automation systems.

The timeline is in line with a written parliamentary reply on 6 October, in which Transport Minister Jeffrey Siow said, as reported by The Online Citizen, that the Bill and consequential amendments to other laws would likely be tabled in the second half of 2027.

For fleet operators, the new Act is likely to define what is expected of a licensed AV fleet operator, separately from the technology provider and the people who supervise the vehicles. Companies looking at autonomous shuttles, buses or logistics vehicles should watch for how licensing, insurance requirements and accident data duties are set out. Earlier this month, LTA called off plans to run driverless buses on services 400 and 191, saying it would first explore narrower uses such as employee shuttles.

SGFleetGuide will report on the AV Bill once its details are published.

Source: The Straits Times (Forum reply by LTA and MOT) — Read the original