Insurance is quite simply the procurement of peace of mind.

November 18, 2018

This is particularly true in the insurance coverage of the public transport system.

While hazards to personal safety exist everywhere, taking public transport to work, business, or school puts people constantly in harm’s way that could result in bodily injuries that could lead to inability to work and do business.

In short, it could mean tremendous economic losses to people.

Insurance cushions such a powerful impact.

The insurance coverage of public utility vehicles (PUVs) will extend past its expiration on Nov. 18 for the protection of the riding public, Sen. Grace Poe said.

A few days before the insurance cover of buses and jeepneys lapsed, Poe said the Insurance Commission (IC) issued Circular Letter 2018-59 dated Nov. 15 that effectively implements a status quo on the Passenger Personal Accident Insurance (PPAI). This covers passengers, drivers and conductors of PUVs involved in vehicular accidents.

Poe's office sought the attention of the Insurance Commission after receiving reports on the matter from concerned transport groups.

"Kamakailan lang, idinulog sa aking tanggapan ang tungkol sa pagtatapos ng bisa ng accreditation ng mga insurance providers ng milyun-milyong pasahero. Fortunately, the Insurance Commission immediately acted by hearing out the concerns of the riding public and the transport sector. Isang malaking pasasalamat sa agarang pagtugon ng Insurance Commission sa isyung ito," Poe, chair of the Senate committee on public services, said.

Without the IC circular, transport owners or operators would have to pay the passenger claims and damages in the event of an accident, Poe explained.

The existing insurance providers shall continue to provide insurance coverage on a hold-over capacity until after the IC issues the necessary regulation.

Under the circular signed by Insurance Commissioner Dennis Funa, insurance coverage is also doubled for victims of vehicular accidents. For example, death benefit has increased to P400,000 while total disability is now at P200,000. Other benefits covering passenger injuries and accidents have also been doubled.

New premium rates shall be: P5,120 (Metro Manila buses); P6,670 (provincial buses); P3,010 (AUV); P2,910 (jeep); P2,510 (sedan); and P1,655 (trucks).