QuestionsQuestions (LTFRB MEMORANDUM CIRCULAR NO. 2014-002)
The PPAIP is a mandatory insurance program for Public Utility Vehicles (PUVs) nationwide, aimed at providing personal accident insurance benefits to passengers, operators, and drivers of PUVs, as required under LTFRB Memorandum Circular No. 2001-010 and its subsequent enhancements.
The LTFRB derives its power from Section 5(K) of Commonwealth Act No. 146, as amended by Executive Order No. 202, which grants it the authority to formulate, promulgate, administer, implement and enforce rules and regulations on land transportation public utilities including safety and protection measures.
The 2013-2015 enhanced PPAIP provides detailed benefits including higher compensation amounts for accidental death, loss of limbs, medical treatments, burial assistance, educational assistance, caskets, ambulance assistance, permanent total disability, bail bond, and legal assistance services, with specific monetary amounts assigned to each benefit.
The approved annual premiums are as follows: Metro Manila Buses - PHP1,780; Provincial Buses - PHP2,100; AUV/UV Express - PHP1,500; Jeepneys - PHP1,450; Sedans - PHP1,200; Trucks - PHP750.
PUV operators who fail to avail of the enhanced benefits after the 30-day reassessment and payment period shall be penalized Two Hundred Pesos (Php200.00) for every day of delay.
The LTFRB conducted a transparent accreditation process and then entered into a Memorandum of Agreement (MOA) with the accredited insurance groups on November 15, 2013.
The Supreme Court upheld the validity, legality, and propriety of LTFRB Memorandum Circular No. 2001-010, affirming the LTFRB's authority to implement the PPAIP.
The guidelines took effect immediately from their publication in a newspaper of general circulation in the Philippines, with three copies directed to be submitted to the UP Law Center for recording pursuant to Presidential Memorandum Circular No. 11, dated October 9, 1992.
Benefits include burial assistance of PHP10,000 for both enrolled drivers and conductors, one-time educational assistance of PHP5,000 for one child of the deceased driver or conductor, and PHP5,000 for the casket of the driver or conductor.