Two groups qualify for accreditation for vehicle insurance

Two insurance consortia are poised to bag deals for the country‘s public utility vehicles (PUVs), sealing their foothold over a market that will likely exceed 400,000 units in three years due to online ride-hailing applications.

“Four consortia filed for accreditation yesterday and two of them submitted complete documents based on our approved instructions: those led by Passenger Accident Management and Insurance Agency, Inc. (PAMI) and SCCI Management and Insurance Agency Corp.,“Land Transportation Franchising & Regulatory Board (LTFRB) Chairman Winston M. Ginez told the House Committee on Metro Manila Development yesterday at the House of Representatives.

PAMI‘s lead insurance company is UCPB General Insurance Company, Inc. while SCCI is with Allied Banker‘s Insurance Corp.

“Two other groups wanted to participate, but their boxes weren‘t opened because of incomplete documents. These are managed by Paramount General Insurance Corp.; and High Definition Technologies, Inc.,“he added.

Mr. Ginez added that they can file a motion for reconsideration within five days.

PUVs and online-based transport providers should have insurance but it can only be provided by firms that are accredited under the 2015-2018 Passenger Personal Accident Insurance Program (PPAIP).

“The number of units is around 400,000. It might also exceed [that level] because the number of TNVS (Transportation Network Vehicle Service) is increasing,“Mr. Ginez said in an interview in the same venue.

“It depends on the consortia‘s marketing skills and how they will operate [to attract clients]. It‘s a free market,“he added.

The LTFRB board increased the death benefit of a passenger, driver or conductor to Php200,000 from Php150,000, “as well other benefits for bodily injury.“It also hiked each consortium‘s claim fund to Php40 million from Php30 million.

“This is to ensure that all claims for death benefits and other injuries will be paid by LTFRB‘s accredited insurance providers even if the latter‘s operations will not be able to honor such claims,“the agency said in a statement yesterday.

It said there will be no increase in premiums for all PUVs, except buses. The accreditation process is to ensure that all passengers are covered by reputable insurance companies ready to meet whatever claims arise, Mr. Ginez said.

The enhanced 2015-2018 LTFRB PPAIP will take effect on Nov. 17.

-- Business World