PAMI explains side on insurance mess

The Philippine Accident Managers Inc. (PAMI) denied charges yesterday that it was misrepresenting itself as the only insurance firm accredited by the Land Transportation Franchising and Regulatory Board (LTFRB) to provide insurance for all public utility vehicles (PUVs).

"We never made such a claim. We do not engage in anything that will mislead the public." PAMI president Eduardo Atayde said in a telephone interview. But Atayde admitted that they were spreading the word that PAMI is the "only group selling the LTFRB (mandated) insurance program," he noted.

"As far as I know, we're the only group that provides the benefits required by LTFRB. If there are others who comply, they can also make this pronouncement," he added.

Atayde also clarified that PAMI is not an insurance firm but an independent company organized to administer and manage activities involved in providing personal accident insurance cover to public utility vehicles.

He said that PAMI is composed of 32 insurance firms duly recognized by the Insurance Commission. The LTFRB has suspended the implementation of the new insurance regulations after several transport operators complained that PAMI had been monopolizing the business.

Operators alleged that some LTFRB personnel are the ones telling applicants for franchises to get insurance only from PAMI. LTFRB chairman Dante Lantin vowed to look into this allegation.

Lantin wrote Atayde asking him to explain reports that his men were making false representations that only PAMI could transact business with the LTFRB.

In response to this, Atayde told The STAR that his personnel could have not been properly informed that there are other insurance firms recognized by LTFRB. "I cannot go around and tell all my men that there are other companies accredited to deal with LTFRB. But I will work into this now," he added.

The LTFRB will re-implement the new insurance regulation on Feb. 29 after the snags in the program have been properly addressed. The new system provides for higher insurance benefits for victims of accidents involving public utility vehicles.