QuestionsQuestions (IC CIRCULAR LETTER NO. 6-2004)
To reiterate the revised rules on motor car manual of rates—specifically how vehicles with dual purpose bodies should be rated and which insurance policy type should be used.
Vehicles fitted with passenger seats and with goods-carrying capabilities.
They shall be rated under the Private Car Tariff and covered using a Private Car Policy.
That vehicles having dual purpose bodies (passenger seats plus goods-carrying capabilities) shall be rated under Private Car Tariff and a Private Car Policy shall be used.
The vehicle must not have been converted into a vehicle for carrying fare-paying passengers and classified as LTO Land Transportation Operator (LTO) vehicles.
To identify vehicles intended primarily for passengers but also capable of carrying goods, which qualifies them for Private Car Tariff rating under the stated conditions.
They illustrate the category of commonly encountered vehicles that fall under the Circular’s dual-purpose classification, supporting that “and the like” includes similar vehicles.
A factual assessment that the vehicle’s primary purpose is passenger use, even if it can carry goods.
They should not be rated under the Private Car Tariff/Private Car Policy if converted into fare-paying passenger vehicles and classified as LTO Land Transportation Operator vehicles.
If the assured’s vehicle is classified as an LTO Land Transportation Operator (for fare-paying passenger carriage), it would remove the vehicle from the Circular’s private-car rating rule.
The assured must show proof that he is engaged in a business where the insured vehicle is utilized in carrying his commodities/goods. This supports eligibility for Private Car Tariff rating despite goods-carrying capability.
Examples include business registration/DTI/SEC documents, delivery receipts, sales invoices, trip tickets, proof of commodity transportation in business operations, or other documentary evidence linking the vehicle to business use.
The Circular requires that the vehicle be primarily intended for passengers and dual-purpose with passenger seats; it also requires no conversion into a fare-paying passenger vehicle. Sole goods use alone does not automatically remove the rule, but business proof may be needed if the goods carriage is central to the assured’s use.
It calls for strict compliance with its reiterated rating/policy instructions, directed to insurance entities/concerned parties implementing the manual of rates.
Adopted on 18 March 2004 and signed by (SGD.) Eduardo T. Malinis, Officer-in-Charge.
It is mandated when the vehicle fits the dual-purpose description and is primarily passenger-oriented, provided it has not been converted into a fare-paying passenger vehicle classified as an LTO operator vehicle; otherwise, exceptions/eligibility depend on conditions like proof of goods carriage in a business context.