Ride-hailing firm Uber has moved a little closer to its destination of being legalised in Hong Kong after securing insurance coverage in line with the city's laws.

Announcing the deal on Thursday, Uber Hong Kong said it had signed a contract with AIG in October last year to provide third-party coverage worth up to HK$100 million for any ride-sharing trip in the city.

The coverage period began on October 17 last year and runs until September 30. "The liability insurance policy ... applies from the moment you book a trip [until] the last passenger exits the vehicle," the company said.

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"The limit of liability is HK$100 million per occurrence for bodily injury or death, which is equal to that required of all vehicles under Hong Kong law."

Prior to this, the firm had taken out global insurance policies for passengers but the terms and conditions were not known to the public.