IC wants accident insurance expanded to motorcycle taxis

MANILA, Philippines — The government wants to expand the coverage of passenger personal accident insurance (PPAI) to motorcycle taxis amid increased exposure following their frequent use as a transport alternative.

In an advisory, the Insurance Commission (IC) released a draft circular on the interim premium and benefit coverage of PPAI for motorcycle taxis.

PPAI is a kind of policy that gives the insured car owner, the driver and passengers coverage protection against unavoidable losses caused by accidental bodily injury or death.

It specifically provides for mandatory insurance coverage for public utility vehicles (PUVs). Motorcycles, however, are not covered by PPAI.

“Even in the absence of a law, motorcycle taxis are now frequently used as an alternative means of public transportation, exposing both the driver and the passenger to accidental injury and death,” IC commissioner Reynaldo Regalado said.

As such, IC and the Philippine lnsurers and Reinsurers Association Inc. proposed the premium and coverage for motorcycle taxis.

Motorcycle taxi service pioneer Angkas started operating its business in 2016. This was eventually followed by other providers such as JoyRide PH and Move It.

Over the past years, motorcycle taxis have been a popular alternative for commuters as traffic in the metro continues to worsen.

Data showed that the number of motorcycles in Metro Manila alone surged nearly four times in the past 10 years on the back of e-commerce demand and the entry of two-wheeled services.

Unfortunately, accidents involving motorcycle taxis have also increased given the inadequate professional skills of some drivers and the lack of proper regulations.

The proposed PPAI coverage will only be provided to motorcycle taxi operators or transportation network companies accredited by the Land Transportation Franchising and Regulatory Board (LTFRB) to transport a passenger.

Based on the draft circular, the annual premium for a motorcycle taxi will be P2,457.14, exclusive of applicable taxes. The rate will be subject to review after one year of its effectivity.

According to the draft, benefits per passenger include P400,000 for accidental death and P200,000 for permanent total disability.

Other benefits range from P2,000 to P150,000 depending on the gravity of the accident.

Proposed additional benefits also include burial assistance worth P15,000 and one-time educational assistance for one child of a deceased driver amounting to P10,000.

For the passengers, ambulance assistance of P7,500, medical implant expenses of P20,000, legal assistance services of P15,000 and family allowance of up to P37,000 may also be considered.

Payment of claims shall be made within five days upon completion of the required documentation.

The IC is also ordering all non-life insurance companies approved by the agency to provide PPAI for motorcycle taxis to submit quarterly reports.

Following the draft release, the IC is now soliciting comments and suggestions from all interested persons within 14 days in a bid to promote participation from the public.