THE INSURANCE COMMISSION (IC) has come up with its proposed premium and benefit rates for the passenger personal accident insurance (PPAI) of motorcycle (MC) taxis, with the coverage amount set at as much as P400,000 per person.
A draft circular letter posted on the regulator’s website showed that the IC is proposing an annual premium of P2,457.14, exclusive of applicable taxes, for the PPAI for motorcycle taxis, which shall be reviewed after one year.
Under the proposal, the PPAI for motorcycle taxis shall have benefit amounts of up to P400,000 per passenger for accidental death and/or dismemberment, depending on the severity of the injury, the IC said.
“The motorcycle taxi has an authorized seating capacity of two, a passenger and the driver. The aggregate limit of liability of the company for death and/or dismemberment, under the policy for any one accident shall be P800,000.”
Additional benefits per passenger can also be provided under the insurance policy. These include burial, ambulance, or legal assistance and medical expense reimbursements, among others.
“The aggregate limit of liability of the company for medical reimbursement, under the policy for any one accident shall be P200,000. Payment of claims shall be made within five working days upon completion of the required documentation,” the IC added.
The Land Transportation Franchising and Regulatory Board requires public utility vehicles (PUV) to secure PPAI coverage to compensate passenger-victims for accidents on top of the compulsory third-party liability insurance.
However, ride-hailing MC taxis are not yet legally considered as PUVs and are still operating under a pilot program in the absence of law regulating the industry.
Only three motorcycle ride-hailing companies are authorized to operate in the country, namely Angkas, Joyride, and Move It, which is a unit of Grab Philippines. The number of motorcycle taxis in Metro Manila is capped at 45,000.
“[Even] in the absence of a law, the motorcycle taxis are now frequently used as an alternative means of public transportation, exposing both the driver and the passenger to accidental injury and death,” the IC said.
The draft rules will cover all nonlife insurance companies with approved PPAI coverage for motorcycle taxis, the regulator said. “The PPAI coverage shall only be provided to motorcycle taxi operators or transportation network companies duly accredited by the Land Transportation Franchising and Regulatory Board to transport a passenger.”
Nonlife insurers must secure IC approval prior to the issuance of PPAI for motorcycle taxis, and shall provide an “all-risk, no fault” insurance coverage in the policy.
The premium and PPAI coverage for motorcycle taxis were proposed by the Philippine Insurers and Reinsurers Association, Inc. (PIRA).
PIRA Executive Director Michael L. Rellosa said in September last year that some motorcycles used in ride-hailing apps have insurance coverage already, but only five companies were writing coverages for motorcycle taxis. — A.M.C. Sy
