In October, National Development Minister and Second Finance Minister Lawrence Wong called on the insurance industry to adapt to meet the demands of emerging technology such as Autonomous Vehicles (AV). But legal and insurance experts said they are still unclear about the liability issues surrounding Singapore's push for AVs to perform a variety of functions here.

For instance, who should be blamed in an accident involving an AV? Criminal responsibility is currently focused on the driver, said Professor Simon Chesterman, Dean of the National University of Singapore's law faculty. The lack of a driver would pose a 'real regulatory challenge' as a result.

"That is where we would need new legislation, but my suspicion is that the law would continue to require an identifiable person who can be 'blamed' for wrongdoing, as well as a compulsory insurance regime to protect those who might be injured," he said. But it is not just accidents. The insurance industry is also trying to figure out if owners of AVs should be charged higher or lower premiums.

The Land Transport Authority already requires AVs being tested here to have third-party insurance. Mr. Manik Bucha, auto Insurance Head at AIG, said AVs could make roads safer and, therefore, lower motor premiums. The Government's vision for the use of AVs has been laid out by the Committee of Autonomous Road Transport (Carts), which was formed in 2014. Carts' vision is that within 10 to 15 years, AVs will perform not just personal but also freight transport functions.