DOTr eyes higher insurance coverage for PUVs
President Marcos has ordered government agencies to find ways to significantly hike the required insurance coverage for public utility vehicles (PUVs) after several were involved in a series of deadly accidents.
“The President reminded us that our priority should be the safety of our passengers. We saw the unfortunate accidents in past weeks. Some [people] died, some were gravely injured. This is the reason insurance is very important,” Transportation Secretary Vince Dizon told Malacañang reporters on Thursday.
“The President’s appeal is to significantly increase the insurance coverage and bring it to the same level for private vehicles and PUVs. I think it’s a very good idea and we will do our best to do that,” he added.
According to Dizon, the Department of Transportation (DOTr) will sit down with the Land Transportation Office and the Land Transportation Franchising and Regulatory Board (LTFRB) to carry out the directive of the President within the year.
“We should impose this, especially now that many accidents on the road involve PUVs. The President noted that our countrymen, as passengers, pay fares in exchange for getting home safe,” he said.
He stressed that PUVs must be held accountable in case of road accidents and should be able to adequately compensate victims for any loss of life or injury.
Accountability
“The passengers should be adequately covered. The bottom line here is passengers’ safety, their peace of mind and their families’ peace of mind. When they ride a bus, jeep, or any PUV, they should be safe. And should anything happen, there should be accountability and compensation,” Dizon said.
The DOTr will also sit down with PUV operators and cooperatives to discuss who will shoulder the added cost of more expensive insurance premiums: the passengers through higher fares, or PUV operators themselves.
“Nothing’s free in this world. Someone has to pay if the premium will be higher. We have to balance that, we have to look at the capacity of PUV operators, of bus companies to absorb that,” Dizon said.
As for the possibility of higher fares to cover the higher insurance premiums, he noted that fares are regulated while there are factors the LTFRB considers in approving a fare increase.
“Right now, we are studying how we can implement this and what regulations are needed. But we agree with the President’s remarks, and those are his orders,” Dizon said.
On Wednesday morning, a multiple vehicle collision on the eastbound lane of the Edsa-Quezon Avenue tunnel in Quezon City left six passengers injured, including a Quezon City policeman.
Four vehicles were involved in the mishap—a bus, two UV Express vehicles and a motorcycle.
On May 1, a four-vehicle collision at the Tarlac City Toll Plaza of the Subic-Clark-Tarlac Expressway left 10 people dead and 37 others injured.
The accidents prompted the Alliance of Transport Operators and Drivers Association of the Philippines (Altodap) to push for higher insurance coverage.
Altodap pointed out that under the Passenger Personal Accident Insurance program, beneficiaries of PUV passengers killed in road accidents may receive up to P400,000, while injured victims are entitled to P100,000.
In contrast, passengers of private vehicles are only entitled to a total of P200,000, regardless of the number of victims, under the compulsory third party liability or the mandatory insurance coverage for private vehicles.
Also on Thursday, Dizon highlighted the importance of enacting a law on modernizing PUVs to institutionalize much-need reforms, funding and incentives.
