Auto accidents covered by mandatory insurance

MANILA, Philippines - The Insurance Commission (IC) has issued a reminder regarding insurance coverage involving vehicular accidents, after the Don Mariano Transit bus tragedy last Dec. 16.

In a press statement, the IC said that there is a mandatory passenger personal accident insurance (PPAI) and compulsory third-party liability (CTPL) for each of the passengers of the Don Mariano Transit bus and the unsuspecting truck utility vehicle (TUV).

“The two insurance coverage were implemented by the Land Transportation Franchising and Regulatory Board (LTFRB) and the Land Transportation Office (LTO), in consultation and coordination with the Insurance Commission, to secure insurance policy cover on all passengers of public utility vehicles (PUB) and covered third parties in order to provide immediate financial relief and assistance to the riding public in case of unexpected mishaps, accidents and certain unforeseen events resulting to death or injury,” the IC said.

The beneficiaries of the victims of the tragedy are entitled to the following maximum amounts, among other covered claims, under the insurance coverage.

For death of passenger under PPAI, the amount of coverage is P75,000. For medical reimbursement for injury of passenger under PPAI, the coverage is worth P15,000. For third party liability for death or injuries under CTPL, the amount of coverage is P100,000.

The IC report said that the UCPB General Insurance Co. through its agent Passenger Accident Management & Insurance Agency Inc. already issued a check worth P750,000 to the Don Mariano Transit Corp. as certificate holder.

In turn, the bus operator should pay out the passenger that were injured or killed in the incident.

Likewise, the driver and/or passenger of the truck that was likewise victim of the Don Mariano bus must receive compensation.

The IC said that the P750,000 “covers only the initial and partial financial assistance under the PPA cover.”

It said that the balance for the full amount covered under the PPAI and the CTPL policies should be paid “upon complete submission of the pertinent documentary requirements.”