Mandatory insurance for PUVs before registration

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LTFRB JOINT LTO-LTFRB MEMORANDUM CIRCULAR NO. 01, SERIES OF 2004: Mandatory insurance for PUVs before registration

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Title Source: Supreme Court: Mandatory insurance for PUVs before registration

Law: Ltfrb Joint Lto-ltfrb Memorandum Circular No. 01, Series Of 2004

Decision Date: Mar 15, 2004

Public utility vehicle operators must secure confirmation from the LTFRB and obtain mandatory passenger accident insurance before registering with the LTO, as non-compliance will result in unauthorized vehicle registration.

Law Summary

Legal Basis Under the Insurance Code of the Philippines

Section 374 of Republic Act 1460 (Insurance Code) mandates that no land transportation operator or vehicle owner may operate on public highways without an active insurance policy.
The insurance must indemnify third parties or passengers for death or bodily injury arising from the use of the vehicle.

Required Types of Insurance

Comprehensive Third Party Liability (CTPL) insurance must be obtained for all PUVs.
Passenger accident insurance must be acquired from LTFRB-accredited insurance management groups:
- Passenger Accident Managers, Inc. (PAMI)
- Special Alliance Management, Inc. (SAMI)

Enforcement and Implementation

All officials from both LTO and LTFRB are mandated to strictly implement the joint memorandum circular.
Non-compliance with this policy shall be subject to legal sanctions as provided by law.

Effectivity

The memorandum circular took effect immediately upon its issuance on March 15, 2004.

Signatories and Authority

Authenticated and adopted by senior officials of the LTO and LTFRB, emphasizing the official nature and binding force of the memorandum circular.

END