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Section 2: Licensing requirements for PHVS

Vehicle licences and licence discs, hire or reward insurance, reporting collisions and safety letters.

PHV Driver's Handbook v1.0 (TfL, Sep 2021), pages 12–13. 3-minute read.

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Numbers to remember

RuleNumber
Length of a PHV vehicle licencePage 121 year
Where the licence discs goPage 122 windscreens (front and rear)
Time for an owner to report a collision that affects the vehiclePage 1372 hours

The section in short

Section 2 is about the vehicle rather than the driver. You need to know these rules even if you do not own the car you drive. Expect SERU questions on licence discs, insurance and how quickly a collision must be reported.

The vehicle licence

When a PHV gets its licence, the registered keeper receives the vehicle licence and a short leaflet about its conditions. One licence disc goes on the front windscreen and one on the rear. A vehicle licence lasts for one year. Before TfL issues a new one, the car must pass another licensing inspection. This is a shorter period than a driver's licence. (Page 12)

Looking after the discs

Never damage, alter or take off the discs, even when you use the car for private trips. They have security features, so trying to remove them ruins them for good. If a disc is lost, stolen or damaged, the owner should contact TfL at once for a replacement. You cannot use the car for private hire while a disc is missing or badly spoilt. (Page 12)

When discs are not shown

In rare cases, TfL allows a vehicle to work without showing its discs. This is an exception, not the normal rule. When it happens, you as the driver receive an exemption notice. Carry that notice at all times while the car does private hire work. (Page 12)

Insurance

Every PHV needs hire or reward insurance. The cover must be valid when the car is licensed and every time it works as a PHV. TfL suggests you carry the policy details. Also carry proof that the policy covers you as the driver, for example when your operator insures the car. You can also display the details inside. Show them to the police on request. If the car is in a collision, you must also give them to passengers or members of the public. (Page 13)

Collision damage

The car must stay in good condition. Do you own the PHV? Then you have 72 hours to report a collision to TfL. This applies if the crash affects the car's safety, performance, look or comfort. TfL may need to examine the car again before it can go back to private hire work. Until then, it may not be allowed to carry passengers. (Page 13)

Fault and recall letters

Sometimes TfL learns of a fault with your car. For example, the maker may say it must come back for repair. If the car is registered to you, TfL or the maker may write to explain what to do. Read these letters carefully and follow the steps. A TfL letter may also say the car cannot do private hire work until the fault is fixed. (Page 13)

Easy to mix up

  • A vehicle licence lasts one year, while a driver's licence usually lasts three.
  • The discs stay on even when you use the car privately.
  • You need hire or reward insurance, not ordinary car insurance, every time the car works as a PHV.

Key terms

Section 2 practice: 5 free questions

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5 of 20 questions free

0 of 5 answered

Question 1 of 5Choose 1

Why should you never try to remove a licence disc from a PHV's windscreen?

Question 2 of 5Fill in 3 spaces

Tap a word, then tap the space.

TfL encourages you to carry proof that you are to drive the vehicle under its hire or reward policy, for example if your holds the policy. You may carry the details or them in the vehicle.

Question 3 of 5Choose 1

What does the handbook encourage you to do with the details of the vehicle's hire or reward insurance when you are working?

Question 4 of 5Choose 1

A police officer stops you while you are working and asks about the vehicle's insurance. What must you do?

Question 5 of 5Choose 1

Looking after a licensed vehicle

Even if you do not own the car you drive, you should understand the rules for licensed PHVs.

A PHV licence lasts for one year. Before TfL issues a new one, the vehicle must pass another licensing inspection. While the vehicle is licensed, it has two licence discs, one on the front windscreen and one on the rear. Leave the discs in place, even when you use the car privately, and never alter them. If a disc is damaged, lost or stolen, the owner should contact TfL straight away. You cannot use the car for private hire while a disc is missing or badly damaged.

The vehicle must have hire or reward insurance whenever it is used as a PHV. It is a good idea to carry the insurance details with you or display them in the car. You must make them available to the police if asked, and give them to a passenger or a member of the public after a collision.

If you own the vehicle and it is in a collision that affects its safety, performance, appearance or comfort, tell TfL within 72 hours.

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