Regulator reviewing transport accident insurance benefits

The Insurance Commission (IC) is currently evaluating the proposal further enhancing the Passenger Personal Accident Insurance (PPAI) program.

According to Insurance Commissioner Dennis B. Funa, a lobby group is seeking the death benefits under the PPAI program be increased to P400,000 and increase the medical benefits to P100,000, among others.

“The commission received a proposal from 1-Utak to double the amount of death benefits under the PPAI program from the existing P200,000 to P400,000. The proposal also seeks to increase the medical benefits to P100,000,” Funa said.

Under the current program, the maximum medical-treatment benefits is only P5,000 without documentary support or receipts, and P20,000 if substantiated by receipts.

The IC also said the transport group proposed that a full-education scholarship be established.

“The educational assistance given to one child of the deceased driver and conductor is only a one-time educational assistance. The current proposal is for a full educational scholarship, meaning up to a four-year college degree,” he said.

Aside from the increase in benefits under the program, the proposal also calls for the inclusion of family allowance and a drivers’ training fund.

“The proposed family allowance in the amount of P1,000 per day shall be given to the family for a period of 30 days, while the beneficiary is confined in the hospital or for a period of seven days in case of internment,” he added.

The transport group also requested for the establishment of a drivers’ training fund to be administered by the Land Transportation Franchising and Regulatory Board (LTFRB), which will help operators who lack financial capacity to train its drivers in support of the LTRFB’s Drivers Academy Program.

“These proposals are currently being evaluated. We are set to meet with the representatives from the nonlife-insurance industry and the two accredited insurance groups managed by Passenger Accident Management and Insurance Agency Inc.  and SCCI Management and Insurance Agency Corporation Inc.,” Funa added.

Relative to the Jeepney Modernization Program, it was likewise proposed that the lead insurers of the LTFRB-accredited management companies for the program be required to invest 50 percent of the funds derived from the program in a transport vehicle-modernization scheme.

“The IC supports any increase in the benefits to be given under the PPAI program to afford more protection to passengers of public-utility vehicles, its drivers and
conductors.