Government Examines Insurance Benefits for Private Vehicles
As the government reviews the insurance benefits for private vehicles, a transport group leader suggests examining the insurance system used for public utility vehicles (PUVs). This review follows President Marcos’ directive for the Department of Transportation (DOTr) to study proposals aimed at increasing insurance coverage for private cars.
The exact four word keyphrase “insurance benefits for private vehicles” is central to this discussion. According to community leaders, the current insurance policy for PUVs offers P400,000 per fatality and P100,000 per injured passenger under a two-group system. This coverage has been widely accepted by both vehicle owners and insurance companies.
Proven System for PUVs Could Guide Private Vehicle Insurance
Local experts note that the two-group insurance system for PUVs was established after intense negotiations in 2008. One transport association president said, “Tested and proven na itong sistemang ito at wala namang masama kung titingnan ito ng DOTr kung puwedeng i-implment sa mga pribadong sasakyan.”
This system has provided peace of mind for many PUV drivers and operators because of its substantial insurance payouts. Community leaders believe a similar framework might work well for private vehicles, especially since the current Compulsory Third Party Liability (CTPL) insurance offers limited protection and is often overlooked.
Key Features of the PUV Insurance System
One of the system’s strengths is the “all risk, no fault” policy under the Passenger Personal Accident Insurance (PPAI). This policy guarantees coverage for all passengers and the driver, regardless of fault or accident cause. The PPAI is mandatory for PUVs to obtain a franchise from the Land Transportation and Franchising Board (LTFRB).
Moreover, insurance for PUVs is split between two accredited insurance groups to streamline application and claims processing. This approach has simplified procedures and ensured timely compensation for victims.
Applying the System to Private Vehicles
Transport advocates urge the government to consider implementing this proven insurance system for private vehicles during registration and renewal processes. Under this model, private car owners and passengers would receive P400,000 per fatality and P100,000 per injured passenger—significantly higher than the current maximum coverage of P200,000, which is shared among all victims in multiple casualty incidents.
Reports indicate that the LTFRB manages the PPAI program. If adopted for private vehicles, it could greatly improve insurance protection and road safety.
Calls for Reform and Improved Road Safety
Following a tragic accident on the SCTEX that resulted in 10 deaths, transport groups have pushed for a fair insurance system for all road users. Their appeals contributed to President Marcos’ directive to the DOTr to explore reforms in the insurance system.
Local transport leaders have also called on DOTr officials and the Insurance Commission to seize this opportunity to enhance road safety measures through comprehensive insurance reforms.
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