Manila, Philippines - The Department of Transportation and Communications (DOTC) is discussing the fate of two insurance companies authorized by the Land Transportation Franchising and Regulatory Board (LTFRB) to provide mandatory insurance policies to public transport vehicle operators.
The DOTC’s move was in response to the ruling issued by the Insurance Commission for the revocation of the general agent license of the Philippine Accident Managers, Inc., (PAMI) and the Universal Insurance Transport Accident Solutions, Inc. (UNITRANS) last April 29.
The IC also ordered the two insurance companies to refrain from further issuing comprehensive third party liability insurance and Certificates of Cover (COCs) for the Passenger Personal Accident Insurance program of the LTFRB.
The IC ruling said PAMI violated its contract with LTFRB which expired last March 2011 due to its non-implementation of the odd-even scheme; unexplained marketing expense/donations to various transport group amounting to more than P.3 million; payment to consulting firms without proof of receipts amounting to P7.6 million; giving out discounts, rebates or commission to various transport groups, associations and organizations; and non declaration of income tax amounting to P5.4 million.
UNITRANS had12 violations on record including the non-implementation of the odd-even scheme, misdeclaration of taxes amounting to P35.4 million; submission of books of accounts not duly registered with BIR; and diversion of ambulance fee and sticker fee collections.
The contract of PAMI and Unitrans should have expired last March 2010 but was extended indefinitely pending review by a DOTC Technical Working Group and revision of the Terms of Reference for the bidding. Five bidders took interest in getting the slot which includes PAMI and UNITRANS.
Dante Velasco, Transportation Undersecretary for the Road Transport Sector and Public Information and Management Information Systems assured that other insurance companies would assume the task of PAMI and UNITRANS should the DOTC decide to revoke their license.