MARINA: Passenger insurance mandatory

CEBU, Philippines - Though it said that not all shipping companies may have protection and indemnity insurance, the Marine Industry Authority-7 has made it clear that passenger insurance is mandatory for all shipping companies.

This after Cordova town Mayor Adelino Sitoy earlier expressed suspicion that shipping companies involved in the ship collision in August last year may not have been covered by any insurance which he claimed to be compulsory under the law.

The town has been claiming P127 million from the protection and indemnity insurance of 2Go Group Inc., owner of the sunken M/V ST. Thomas Aquinas, and Philippine Span Asia Carrier Corp, formerly Supicio Lines which owned the M/V Sulpicio Express Siete, for the environmental damaged incurred in the town from the oil spill that followed the incident.

MARINA-7 Director Nannette Villamor-Dinopol explained that the protection and indemnity insurance only covers liabilities arising from pollution and wreck removal.

However, the P and I insurance became optional for shipowners and operators since 2010 following the issuance of the Cease and Desist Order effective March 1, 2010 against the implementation of its Circulars which include the P and I Policy.

But Dinopol said that what is required and mandatory under the law for the issuance of Certificate for Public Convenience is the passenger insurance.

Under the Marina Memorandum Circular NO. 40, there will be no CPC issued or renewed unless and until a passenger insurance coverage is submitted to the Authority.

CPC is an authorization issued for the operation of public services such as a common carrier.

The passenger insurance policy covers accidental death, total or permanent disability, as well as bodily dismemberment and/or disablement, subject to the schedule of benefits.

Death covers burial and funeral expenses while bodily injury covers permanent disability and medical or hospitalization expenses in accordance with the Schedule of Indemnities. For instance, loss of two limbs is covered 100 percent. The same goes with loss of both hands or all fingers and both thumbs, total loss of sight of both eyes, total paralysis or Loss of both feet.

Meanwhile, the Philippine Coast Guard  has reminded 2Go of their responsibility in removing the wreck of sunken M/V St Thomas Aquinas from its current site.

PCG said in its letter addressed to 2Go that there is still risk and danger from the ship’s debris in the future since the wreck is not totally stripped with debris. It added that the removal of the wreck is substantial to ensure navigational, environmental and public safety.

2Go during a meeting, PCG said, is considering the idea of salvaging but has no time frame yet. PCG said they would create a Technical Working Group to work on the matter. (FREEMAN)