Non-life insurance companies back LTFRB program

Even with a small group of insurance companies dissenting, a big group of licensed, non-life insurance companies have joined the two consortia accredited by the Land Transportation Franchising and Regulatory Board (LTFRB) for the Personal Accident Insurance Program that started last year.

The program aims to protect the riding public against accidents that may occur while they are aboard any LTFRB-registered public utility vehicle.

Under its memorandum circular, the LTFRB Board accredited only two groups of insurance companies to minimize predatory pricing and difficulty in payment of claims, ensure the payment of correct taxes to the government, and even get rid of unwanted fixers doing business in the premises of the LTFRB and the Land Transportation Office (LTO).

The LTFRB and the Insurance Commission carefully studied the insurance program in consultations with big transport groups.

Also, the Insurance Commission, the government agency tasked with insurance matters, had confirmed its legality.

Since the program started, the two consortia — the Philippine Accident Managers Inc. (PAMI), led by the UCPB General Insurance Co., and the Passenger Accident Insurance Consortium 2 (PAIC), led by the Great Domestic Insurance Co. — have settled combined claims of about P14.2 million. PAMI has 21 members, and PAIC, 19.

The LTFRB said this clearly upholds the objectives of the entire program of giving ample security and protection to the riding public as well as to public transport operators.

The LTFRB program does not limit its accreditation as long as an insurance company has an updated certificate of authority from the Insurance Commission and conforms with the circular by joining either PAMI or PAIC.