What Changed
- Backup operators of autonomous vehicles, whether inside, nearby, or in remote control rooms, are legally classified as drivers under Cap. 374.
- Insurers must pay third-party compensation for death or bodily injury under Cap. 272 even if an unauthorized ADAS was activated, subject to recovery from the insured.
- Unapproved ADAS usage under the Southbound Travel scheme can lead to careless or dangerous driving charges and revocation of travel eligibility.
# Understanding Hong Kong's Autonomous Vehicle and Driver Assistance Regulatory Framework
## Background
In recent years, Hong Kong SAR has taken active steps to promote and regulate autonomous vehicle (AV) technology. Following the implementation of a dedicated regulatory regime for AVs on March 1, 2024, the Hong Kong SAR Government has issued pilot licences to facilitate trials and testing. Policy commitments highlighted in the 2025 Policy Address and the 2026–2027 Budget further signal an official push to accelerate large-scale driverless autonomous driving and expedite commercial deployment.
However, the expansion of AV technology and advanced driver assistance systems (ADAS) raises crucial questions regarding legal liabilities, cross-border vehicle operations, insurance coverage, and public driver education. On October 7, 2026, the Secretary for Transport and Logistics, Ms Mable Chan, provided a detailed written response to Legislative Council questions raised by Hon Lau Ka-keung, clarifying how Hong Kong's legal and regulatory frameworks handle autonomous vehicles, unapproved ADAS usage under the Southbound Travel for Guangdong Vehicles (STGV) scheme, statutory third-party insurance obligations, and driver testing.
## Liability Framework for Autonomous Vehicles
Under the existing legal framework in Hong Kong SAR, autonomous vehicles remain subject to the Road Traffic Ordinance (Cap. 374) and its subsidiary legislation, just like conventional motor vehicles. The general vehicle registration and licensing regime applies equally to AVs, placing legal obligations on registered vehicle owners and licence holders.
Key aspects of the liability framework include:
- **Definition of "Driver":** Pursuant to section 2 of Cap. 374, the definition of "driver" extends to backup operators of an AV. This applies regardless of whether the backup operator is located inside the vehicle, in its immediate vicinity, or operating remotely from a control room. When operating an AV, backup operators bear the existing legal liabilities assigned to conventional drivers.
- **Pilot Proprietors' Obligations:** Holders of pilot licences (pilot proprietors) issued by the Transport Department (TD) under the Road Traffic (Autonomous Vehicles) Regulation (Cap. 374AA) and the Code of Practice for Trial and Pilot Use of Autonomous Vehicles must maintain AVs in good, serviceable condition and ensure autonomous driving systems operate properly. Non-compliance with licence conditions may result in legal liability.
- **Data Collection and Adjudication:** AVs must carry journey recorders to log operational data. In the event of an accident, investigating authorities inspect these records to evaluate system performance. Depending on the cause and proof adduced, criminal or civil liability may fall on the operator, vehicle owner, or vehicle supplier. Parties may raise standard common law defenses before the courts.
## Rules on ADAS and Southbound Travel for Guangdong Vehicles
The misuse of unapproved Advanced Driver Assistance Systems (ADAS)—particularly Level 2 or lower systems requiring continuous driver supervision—presents specific enforcement challenges under the Southbound Travel for Guangdong Vehicles (STGV) scheme.
To ensure compliance before and during entry into Hong Kong SAR:
- **Vehicle Inspection:** Vehicles under the STGV scheme must pass an examination at a TD-designated Mainland inspection center to confirm compliance with Hong Kong's safety and environmental standards.
- **Prohibition on Unapproved ADAS:** The TD explicitly informs applicants that any ADAS not approved by the TD must not be activated on Hong Kong roads. Reminders are delivered in person during inspections at Mainland centers, via distributed notices, and through reminder emails.
- **Enforcement and Penalties:** The Hong Kong Police Force monitors road safety through patrols and intelligence gathering. Activating unapproved ADAS or taking hands off the steering wheel while moving may constitute traffic offences such as careless driving or dangerous driving. Upon conviction, drivers face fines, driving licence revocation, or imprisonment. Additionally, the TD will follow up on violations by reporting cases to the Guangdong Provincial Government and suspending or revoking the vehicle's STGV travel eligibility.
## Statutory Insurance Protection
Autonomous vehicles are subject to mandatory third-party risks insurance under the Motor Vehicles Insurance (Third Party Risks) Ordinance (Cap. 272) to protect the general public, passengers, and pedestrians.
Regarding insurance coverage during unauthorized ADAS use or AV operation:
- **Third-Party Death or Bodily Injury:** Statutory protection applies to bodily injury or death caused on Hong Kong roads, including incidents involving unauthorized ADAS under the STGV scheme. Even if policy terms contain express exclusions regarding unauthorized ADAS usage, the insurance company must compensate the injured third party first under statutory rules. The insurer retains the legal right to recover the paid compensation from the insured afterward.
- **Third-Party Property Damage:** Compensation for property damage is handled in accordance with individual policy terms and the specific circumstances of the accident.
- **Future Developments:** The TD continues to consult the insurance industry to establish specialized insurance arrangements for advanced AV stages, such as operations where there is no backup operator on board and reliance is placed solely on remote backup operators.
## Frequently Asked Questions
**Q1: Who bears legal liability as a "driver" during autonomous vehicle operation in Hong Kong SAR?**
A1: Under section 2 of the Road Traffic Ordinance (Cap. 374), backup operators are legally classified as drivers. This applies whether the backup operator is inside the vehicle, in its vicinity, or controlling it remotely from a control room. They assume standard driver legal liabilities under Hong Kong law.
**Q2: What are the penalties for using an unapproved ADAS on Hong Kong roads under the Southbound Travel for Guangdong Vehicles scheme?**
A2: Drivers using unapproved ADAS or taking their hands off the steering wheel may be prosecuted for careless driving or dangerous driving, which carry penalties of fines, licence revocation, or imprisonment. Furthermore, the Transport Department may report cases to the Guangdong Provincial Government and suspend or revoke the vehicle's travel eligibility.
**Q3: Does insurance cover third parties if an accident occurs while an unauthorized ADAS is active?**
A3: Yes, statutory protection under Cap. 272 generally covers third-party bodily injury or death. Even if an policy excludes unauthorized ADAS use, the insurer must compensate the affected third party first, and may subsequently recover the compensation amount from the insured. Property damage claims depend on individual policy terms.
**Q4: How is the Transport Department addressing driver education regarding driver assistance systems versus automated driving systems?**
A4: The TD promotes awareness through the Road Users' Code, Road Safety Bulletins, and social media platforms, reminding drivers to read owner handbooks and keep their hands firmly on the wheel. Written driving test questions incorporate proper system usage based on the Code, and the TD is considering incorporating relevant skills into instructor training courses.
Who May Be Affected
Autonomous vehicle pilot scheme proprietors, registered vehicle owners, drivers participating in the Southbound Travel for Guangdong Vehicles scheme, motor insurers, and road users in Hong Kong SAR.
Cross-Border Context
Applies to drivers and vehicles entering Hong Kong SAR from Guangdong Province under the Southbound Travel for Guangdong Vehicles scheme.
What to check next
- Future Transport Department announcements regarding specialized insurance arrangements for remote backup operators without on-board personnel.
- Updates to driving instructor induction and refresher course curricula regarding ADAS skills.
This article provides general information and does not constitute legal advice. Consult the official text and obtain advice appropriate to your circumstances where needed.