Legal Basis and Validation
- PPAIP was initially required under LTFRB Memorandum Circular No. 2001-010 pursuant to Section 5(K) of Commonwealth Act No. 146, as amended by Executive Order No. 202.
- The Supreme Court upheld the legality of the PPAIP under this memorandum circular in Eastern Assurance and Surety Corp. v. LTFRB (G.R. No. 149717, 2003).
Benefits Under the Enhanced 2013-2015 PPAIP
- The program covers numerous benefit categories payable per passenger, including:
- Accidental death: PHP 150,000
- Loss of two or more limbs or total and irrevocable loss of sight in both eyes: PHP 75,000
- Dismemberment or loss of individual limbs/fingers/toes with corresponding amounts ranging from PHP 600 to PHP 60,000
- Medical treatment without receipt: PHP 5,000
- Medical treatment with receipts (except certain major losses): up to PHP 15,000
- Burial assistance and educational assistance for drivers and conductors
- Additional benefits such as ambulance assistance, bail bond, legal assistance
Accredited Insurance Providers
- Two accredited insurance groups were selected through transparent accreditation and Memorandum of Agreement:
- UCPB General Insurance Company, Inc. partnered with Passenger Accident Management and Insurance Agency, Inc. (PAMI)
- Alliedbankers Insurance Corporation partnered with SCCI Management and Insurance Agency, Corporation (SCCI)
Policy Acquisition and Premiums
- PUV operators are required to secure their policies for 2014 and 2015 from either accredited insurance group.
- Approved annual premiums differ by vehicle type and location, for example:
- Metro Manila buses: PHP 1,780.00
- Provincial buses: PHP 2,100.00
- Jeepneys: PHP 1,450.00
- Trucks: PHP 750.00
Re-assessment and Payment Procedures
- Operators with PUVs bearing plate numbers ending in 1 & 2 who have prior purchased 2014 insurance under older premium and benefit schemes must re-assess and pay the adjusted premiums within 30 days from the circular's effectivity.
Penalties for Non-Compliance
- Operators failing to avail the enhanced benefits after the reassessment period face a penalty of PHP 200 per day starting after the 30-day window.
Effectivity and Supersession
- The circular supersedes all prior inconsistent issuances.
- It takes effect immediately upon publication.
- Copies are filed at UP Law Center for official recording as mandated by Presidential Memorandum Circular No. 11.
Administrative Enforcement
- Signed and issued by the LTFRB Chairman, Board Members, and Officer-in-Charge Executive Director with full enforcement power under the DOTC Order No. 2013-142.