CPBOA: Comprehensive insurance unnecessary

CEBU, Philippines - The Cebu Provincial Bus Operators Association is opposed to the proposal to require operators of public conveyance to secure a comprehensive insurance coverage.

 CPBOA president Richard Corominas said that operators of public utility vehicles have already third party liability insurance for their units as required in their franchise by the Land Transportation Franchising and Regulatory Board.

 “Dili na na kinahanglan ang comprehensive insurance coverage (that is no longer needed),” said Corominas, who leads 40 bus companies operating in Cebu.

Corominas suggested that Congress should instead revisit or overhaul the existing insurance companies accredited by LTFRB.

 According to Corominas, PUV operators at present cannot choose the insurance company to whom they wanted to insure their units because there are accredited companies of LTFRB.

 He lamented that the schedule of benefits from these insurance companies are no longer attune with the modern times.

 “Daghan ang walay labot sa maong insurance. Like dili apil ang stainless, gamay ra ang professional fee sa mga doctors, ang room accommodation gamay ra sad and so on and so forth (many are not covered by the insurance like stainless, professional fee of the doctor is very minimal as well as the room accommodation) ,” he said.

 Rep. Anthony Del Rosario of the 1st District of Davao del Norte has authored House Bill 6174 which requires mandatory comprehensive insurance, including coverage for own damage and theft, bodily injury and property damage and passenger personal accident for all public vehicles.

 CPBOA spokesperson Julito Flores said that under the existing third party liability, only passengers are entitled to an insurance of up to P100,000 each.

 “Kanang gi ingon niya (del Rosario) nga own damage and theft, problema na na namong mga operators. Dili na nakinahanglan ang comprehensive insurance (damage and theft are already operators’ lookout. Comprehensive insurance no longer necessary),” he said.

 Under the proposed measure, which will be known as the “Public Utility Vehicles’ Comprehensive Insurance Act,” Voluntary Third Party Liability (VTPL) coverage shall be up to a particular amount that is applied after exhausting the limited liability amount of P100,000 as provided under the compulsory third party liability insurance.

 This shall include reimbursement of medical costs for victims of the vehicular accident and liability for property damage caused by the insured vehicle against a third party vehicle or property.

 The bill also provides coverage against death or bodily injury sustained by passengers of the insured vehicle due to accidents while riding the insured vehicle.

Land Transportation Office-7 director Raul Aguilos said that proposed measure is a laudable move and he is supporting its passage.

 The bill imposes a penalty of P50,000 and suspension of the franchise to operate for any operator of a public transport service that fails to comply with the requirement of securing a compulsory comprehensive insurance coverage for their motor vehicles.

 Del Rosario said it is the operators’ paramount obligation, more than the drivers’, to ensure the safety of their passengers, their vehicles, third parties and properties of third parties.  (FREEMAN)