Law Summary
Purpose and Background
This Memorandum Circular establishes the framework for the Passenger Personal Accident Insurance Program under the Land Transportation Franchising and Regulatory Board (LTFRB). It follows the earlier Memorandum Circular No. 2001-001, which instituted a "Two-Group" System for implementation.
- Objective: To regulate and streamline the participation of accredited insurance groups in the Passenger Personal Accident Insurance Program.
- Context: The LTFRB aims to ensure the provision of adequate insurance coverage for public utility vehicles (PUVs).
Accredited Insurance Groups
Three groups expressed interest in joining the program:
- Philippine Accident Managers, Inc. (PAMI)
- Asosasyon ng mga Taga Insurance sa Pilipinas, Inc. (ATIP)
- Passenger Accident Insurance Consortium 2 (PAIC 2)
Key Points:
- Eligibility: Each group must have a minimum of ten (10) members and an aggregate paid-up capitalization of at least P500 Million.
- Accreditation: Only PAMI and PAIC 2 demonstrated the capability to service all regional offices nationwide.
Recognition of Groups
The Board has accredited the following groups:
- PAMI: Led by UCPB Insurance
- PAIC 2: Led by Great Domestic Insurance
Details:
- Accredited Status: PAMI and PAIC 2 are recognized as the two groups authorized to participate in the Two-Group System.
- Effective Date of Accreditation: This accreditation is valid until December 31, 2003, subject to extension, revocation, or suspension by the Board.
Insurance Assignment Based on Vehicle Numbering Scheme
The Memorandum introduces an odd-even scheme for assigning insurance providers based on the last digit of the LTO license plate.
- Insurance Assignment:
- Vehicles with an EVEN middle number (0, 2, 4, 6, 8) will be insured by UCPB Insurance (PAMI).
- Vehicles with an ODD middle number (1, 3, 5, 7, 9) will be insured by Great Domestic Insurance (PAIC 2).
Notable Change:
- The odd-even scheme will reverse starting January 1, 2003: PAIC 2 will then cover EVEN numbers, while PAMI will cover ODD numbers.
Implementation and Effectivity
- Effective Date: The Memorandum Circular takes effect on March 1, 2001.
Conclusion and Signatories
The Memorandum was adopted on February 28, 2001, with the signatures of:
- Dante M. Lantin, Chairman
- Vigor D. Mendoza II, Board Member
- Remedios G. Belleza, Board Member
Key Takeaways
- The LTFRB recognizes PAMI and PAIC 2 as the accredited groups for the Passenger Personal Accident Insurance Program.
- An odd-even scheme determines which insurance provider is assigned to vehicles based on their LTO license plate number.
- This accreditation is valid until the end of 2003, with a scheduled reversal of the odd-even scheme in 2003.
- The Memorandum Circular is effective from March 1, 2001.