QuestionsQuestions (PRESIDENTIAL DECREE NO. 1814)
License may be refused/suspended/revoked if the Commissioner finds, among others: (1) willful violation of the Code; (2) intentional material misstatement in the application; (3) obtaining/attempting to obtain a license by fraud or misrepresentation; (4) fraudulent or dishonest practices; (5) misappropriation/ conversion/illegal withholding of fiduciary moneys; (6) failure to demonstrate trustworthiness and competence to safeguard the public; (7) material misrepresentation of policy/contract terms and conditions; or (8) failure to pass the required written examination unless exempt. Additionally, renewal cannot be granted if the holder has not been actively engaged as agent/broker per rules of the Commissioner.
An application may be refused or a license may be suspended/revoked if the applicant/holder has failed to pass the written examination prescribed, unless the person is otherwise exempt from taking the same.
A “Third Party” excludes a passenger (as defined in the same section) and also excludes: (1) members of the household; (2) members of the family within the second degree of consanguinity or affinity of a motor vehicle owner or land transportation operator; and (3) the owner/operator’s employee in respect of death or bodily injury arising out of and in the course of employment.
It refers to a contract of insurance against passenger and third-party liability for death or bodily injuries arising from motor vehicle accidents.
It is unlawful to operate a land transportation vehicle on public highways unless there is in force an insurance policy or guaranty in cash or surety bond issued under the chapter, to indemnify death or bodily injury of a third party or passenger (as the case may be) arising from the use of the vehicle.
They may either: (1) secure an insurance policy; or (2) post a surety bond in the required amount; or (3) make a cash deposit with the Commissioner in the amount required as limit of liability under Sec. 377 for specified third-party/passenger coverage.
At least the minimum indemnity set in the scale: (a) 26 or more passengers—₱50,000; (b) 12 to 25 passengers—₱40,000; (c) 6 to 11 passengers—₱30,000; (d) 5 or less passengers—₱5,000 multiplied by authorized capacity. This coverage applies for death/bodily injuries of third parties and/or passengers.
The Commissioner resorts to the cash deposit or surety bond in cases of accidents where third-party/passenger indemnities are not settled accordingly by the operator. The cash deposit must be replenished or the surety bond restored within 60 days after impairment or expiry; otherwise, the operator must secure the required insurance policy. The Commissioner may invest the cash deposit in readily marketable government bonds/securities.
Private Cars: Bantam—₱20,000; Light—₱20,000; Heavy—₱30,000. Other Private Vehicles: tricycles/motorcycles/scooters—₱12,000; vehicles with unladen weight ≤2,600 kg—₱20,000; 2,601–3,930 kg—₱30,000; over 3,930 kg—₱50,000.
The Commissioner may, if warranted, set forth schedules of indemnities for the payment of claims for death or bodily injuries consistent with the coverages set forth in Sec. 377.
The Land Transportation Commission may require the operator/owner to obtain, in lieu of a policy or surety bond, a certificate that a cash deposit has been made with the Commissioner in the required amount as limits of indemnity under Sec. 377 for passenger and/or third-party liability.
Notice of claim must be filed within 6 months from the date of the accident; otherwise, the claim is deemed waived. Action/suit for recovery due to injury must be brought with the Commissioner or the courts within 1 year from the date of the accident; otherwise, the right of action prescribes.
It must be a written notice stating the nature, extent, and duration of the injuries sustained as certified by a duly licensed physician. It is important because filing within the 6-month period is mandatory; otherwise, the claim is deemed waived.
The claim is deemed waived.
The claimant’s right of action shall prescribe.