LTFRB: PUV operators can choose their insurance provider

The Land Transportation Franchising and Regulatory Board (LTFRB) on Friday said operators of public utility vehicles (PUVs) are free to choose their insurance providers.

In a statement, LTFRB Chairman Teofilo Guadiz III said that the regulator will strictly follow the provisions of the Department of Transportation (DOTr) Department Order (DO) 2018-020 or the Revised Guidelines on Mandatory Insurance Policies for Motor Vehicles and Personal Passenger Accident Insurance (PPAI) for Public Utility Vehicles.

Guadiz cited Section 3 of DO 2018-020, which states, “applicants are free to choose and secure the Insurance Policies from any of the Qualified Insurers and all insurance premiums shall be strictly paid in the offices or authorized collection sites of the Qualified Insurers.”

“For Personal Passenger Accident Insurance (PPAI), the instruction is to accept a policy from insurance providers duly accredited by the Insurance Commission. As regards Third-Party Liability (TPL) insurance policy, operators are free to choose and secure the same from any insurance company accredited by the Insurance Commission,” the LTFRB chair said.

Guadiz also clarified that the LTFRB is not looking to increase the number of players or choices of insurance companies that PUV registrants can choose from.

He said the power to accredit new insurance players lies solely on the Insurance Commission. — DVM, GMA Integrated News