Question & AnswerQ&A (LTFRB MEMORANDUM CIRCULAR NO. 2004-004)
The purpose is to amend previous guidelines on the implementation of the Revitalized LTFRB Passenger Personal Accident Insurance Program (PPAIP) for Public Land Transportation Services, setting new accreditation and operational standards for insurance providers under the program.
It is a system where two insurance management groups, Philippine Accident Managers, Inc. (PAMI) and Special Alliance Management, Inc. (SAMI), are accredited to manage insurance coverage. Assignment of vehicles to groups is based on the odd or even middle number of the vehicle's LTO-issued plate.
Philippine Accident Managers, Inc. (PAMI) led by UCPB General Insurance Co. Inc, and Special Alliance Management Inc. (SAMI) led by Stronghold Insurance Co. Inc.
All public utility vehicles such as buses, mini buses, jitneys, AUVs/vans, sedans, and trucks-for-hire are required to secure an "All Risk-No Fault" passenger personal accident insurance coverage.
Benefits include death benefits, medical benefits for major injuries, accidental death, loss or dismemberment of limbs or sight, loss of hearing, bail bond assistance, and others as specified under the policy with specified maximum amounts per injury type.
Coverage applies despite driver conditions such as unauthorized driving or intoxication, route violations, during incidents of homicide or assault, non-paying passengers, boarding or disembarking, vehicle ownership change, and even terrorist attacks, without termination until expiry unless vehicle status changes.
Conditions include no predatory pricing, no commissions or rebates, authorized representatives only, timely claim payments within five working days, maintaining a Common Claims Fund of not less than PhP 10 million, and maintaining a distinct book of accounts.
Sanctions include progressive fines for first and second offenses, and termination of contract for the third and final offense, along with possible Cease and Desist Orders issued by the Board.
Yes, each management group may rotate its lead company within a minimum period of six months and a maximum of one year, provided 15 days' prior notice is given to the Board and upon Board approval.
The IC is responsible for accrediting the two management groups, inviting insurance companies to participate, determining the composition and distribution of the companies, establishing guidelines for duties and risk sharing, and approving the insurance package before implementation.
PAMI and SAMI must establish a nationwide computer database accessible via the LTFRB website in real time, set up a 24/7 hotline, and create a PUV Accident Monitoring System to assist emergency responses and claims processing.