Republic of the Philippines

House of Representatives
Batasan Hills, Quezon City

SIXTEENTH CONGRESS
First Regular Session

42

House Bill No.

Tntroduced by: Congressman Mariano U. Piamonte Jr. and
Congresswoman Julieta R. Cortuna, Representatives, A TEACHER Party-list

EXPLANATORY NOTE

December 30, 2000. 22 people were killed and hundreds more were injured when a car of the
Light Rail Transit exploded. It was just a part of the series of explosion plotted by some terrorist
groups, the Jemaah Islamiyah and the MILF. This is the Rizal Day Bombings. And this incident
is truly a memorable event that deserves reckoning in Philippine history.

September of 2009. One of the locomotives of Philippine National Railways (PNR) train got
derailed from its tracks while on its way to Naga City, Camarines Sur. Authorities say that it was
a “minor” derailment and that the engine stopped before it went overboard due to loose wooden
ties. Fortunately, no one got hurt.

And just recently, a security guard who accidentally fired his service firearm had injured seven
people, most of whom were just passing by the LRT-EDSA station in Pasay City. The LRT
authorities promised to extend medical assistance to the injured. The security guard now faces
charges of reckless imprudence resulting to multiple physical injuries.

These are just few of the numerous accidents that happened.

Accidents are inevitable, unexpected and undesirable; such occurrences deserve our close
scrutiny and serious consideration. A great percentage of our people rely on public
transportation. According to the National Statistics Coordination Board, transportation “plays a
vital role in the development of a country’s economy. (The public) need it to go to work and
goods and services will not be able to reach consumers unless they pass through channels of
transportation, be it by land, water or air. It contributes to employment generation and it has a
crucial role in tourism, since it links people travelling to different destinations.” The contribution
of the riding public to the gross average income of our country is undeniably quite substantial.

With this huge figure of public transportation users that continue to rise because of the unceasing
ascent of prices in diesel and gasoline, it is appropriate that the commuters, by way of assistance
and protection when fortuitous events do occur while they are inside the premises of a particular
public transport.


This Bill aims to give focus to the security of the commuters who use the Philippine National
Railwas, the Metro Rail Transit (Metrostar/MRT3), Light Rail Transit (LRT1) and the Megatren
(LRT2). The public railway transportation moves myriads of people. The railway systems of the
Philippines alone transport approximately 346 million people (National Statistics Coordination
Board, as of 2007). In 2007, the government revenues grossed to about 4.6 Billion Pesos (NSCB,
2007). Imagine how many commuters use the public railways as of 2010 and how much the
government earned from then on.

In this regard, it is just apt and fitting for the government to give the public railway users the
insurance that they deserve.

Insurance is a means of guaranteeing protection of safety. It is a promise to pay you or your
beneficiaries in the event of loss. A person purchases insurance primarily because life has risks.
Risks and accidents are things that we cannot gauge and presume. We cannot conclude and say
that it is safer to use the public trains than the private vehicles, or vice versa. The numbers and
statistics are not the sole speakers of this contention because as mentioned at the beginning of
this piece, trains are never devoid of accidents and risks. Accidents do not choose which one is
the better target.

It is not enough that the government promises to shoulder the expenses of the unfortunate
victims of accidents inside train/railway premises. It is better to make the public to feel secure
knowing that they are insured in case something happens to them. And this insurance should be
mandated. This insurance system should become a right and not a privilege. Everyone deserves
protection, and this policy on giving insurance, if directed properly, would bring forth hope to
the good public that the government really cares for.

brink PIAMOMTE JR.

JETA R. CORTUNA

A

http:/¢lobalnation inquirer. nevnews/breakingnews/view/20090922-226345/PNR-train-derailed-Bicol-run-st
(Date accessed: January 13, 2011)

http2/timelines, com/2000/12/30/rizal-day-bombings (Date accessed: January 13, 2011)
‘hupziwow.nseb.gov.phveadlinesStatsSpeak/2009/101209 rav_raab_trans.asp (Date accessed: January 14, 2011)


Republic of the Philippines

House of Representatives
Batasan Hills, Quezon City

SIXTEENTH CONGRESS
First Regular Session

42
House Bill No.

Tniroduced by: Congressman Mariano U. Piamonte Jr. and
Congresswoman Julieta R. Cortuna, Representatives, A TEACHER Party-list

AN ACT REQUIRING ACCIDENT AND LIFE INSURANCE COVERAGE FOR
RAILWAY TRANSIT PASSENGERS

SECTION 1. Short Title — This Act shall be known as the “Insurance for Railway
Passengers Act”

SECTION 2. Definition of Terms — For purposes of this Act, the term:

“Passenger” shall mean any person who has paid a fare to be transported from one place to
another using any public railway transportation;

“Railway Transit System” shall mean any transportation system designed to allow passenger
travel within or throughout rural and/or urban area, usually employing surface, elevated, or
underground railway systems or some combination of these. Railway transit systems are
generally considered to be mass transit systems, capable of moving large numbers of passengers
ina single train;

“Licensed Private Insurance Company” shall mean any insurance company duly registered under
the Philippine laws and under the Securities and Exchange Commission and doing business in
the Philippines;

“Fortuitous Event” shall mean an event of natural or human origin that could not have been
reasonably foreseen or expected and is out of the control of the persons concerned;

“Force Majeure” shall mean an event that is a result of the elements of nature, as opposed to one
caused by human behavior;

“Beneficiaries” are the spouse until he or she remarries and the legitimate, legitimated or legally
adopted and illegitimate children, who shall be the primary beneficiaries of the member.


Provided, that the illegitimate children shall be entitled to fifty percent (50%) of the share of the
legitimate, legitimated or legally adopted children: Provided, further, that in the absence of the
legitimate, legitimated children of the member, his/her dependent illegitimate children shall be
entitled to one hundred percent (100%) of the benefits. In their absence, the parents who shall be
the secondary beneficiaries of the member. In the absence of all the foregoing, any other person
designated by the member as his/her secondary beneficiary;

“DOTC” is the Department of Transportation and Communication;
“BIR” is the Bureau of Internal Revenue.

SECTION 3. Commencement and Termination of Coverage ~ The insurable interest,
pursuant to Chapter 1 Title 3 of Presidential Decree No. 612, otherwise known as the Insurance
Code of the Philippines, shall commence from the time the passenger has procured the ticket
with the intent to board the train, and shall end at the time such passenger shall have alighted the
train and leaves the station up to 10 meter radius of the premises.

SECTION 4. Liability / Non-Liability of the Insurance Company —

4.1 Accident and life insurance shall cover death and physical injuries suffered by the passenger,
to wit:

a. Malicious and/or negligent acts of another person including but not limited to, the
railway officers, employees, passengers, and other persons not considered passenger
or employee of the railway transit;

b. By defective trains, cars, construction, articles, parts or amenities of the railway
transit;

c. Fortuitous events;

d. Force majeure.

4.2 When the insurance company is not liable:

No proceeds from the insurance company shall be payable if the passenger dies or suffers
injury due to:

. Suicide or attempted suicide by him;
. Self-inflicted injury;

His own criminal act;

Any act committed by him in a state of intoxication of insanity;

. Any natural cause or disease or medical or surgical treatment unless such treatment
becomes necessary due to injury caused by the said untoward incident.

paogp

SECTION 5. Administration of the Insurance Policy — shall be by a licensed private
insurance company duly organized under Philippine laws and awarded by the DOTC upon public
bidding duly called for such purpose.

SECTION 6. Payment of Premium — The insurance premium shall be paid by the
railway company. Such payment will come from their gross income and it shall be considered as
a tax credit in favor of the railway company’s corporate income tax liabilities for the following
fiscal year.


SECTION 7. Benefits — Notwithstanding any benefits provided by any institution to the
insured, the insured shall be entitled to the following benefits:

Death Benefits - The amount of TWO HUNDRED THOUSAND PESOS (P200,000)
shall be awarded to the beneficiaries in case the passenger victim died.

Hospitalization Benefits — An amount not exceeding ONE THOUSAND FIVE
HUNDRED PESOS (P1,500) per day of hospitalization bills and other medical expenses shall be
awarded to the insured or the beneficiaries. Provided however that the total amount shall not
exceed ONE HUNDRED FIFTY THOUSAND (P150,000). Provided further that if the
passenger died and the cause of the death is the incident and have been receiving hospitalization
benefits, his/her beneficiaries shall be entitled to receive TWO HUNDRED THOUSAND
PESOS (P200,000) death benefit.

SECTION 8. Implementing Rules and Regulations — Within sixty (60) days from the
approval of this Act, the DOTC and the BIR, in coordination with other government agencies
concerned, shall issue the rules and regulations to effectively implement the provisions of this
Act. Any violation of this section shall render the concerned official(s) liable under Republic Act
No. 6713, otherwise known as the “Code of Conduct and Ethical Standards for Public Officials
and Employees” and other existing administrative and/or criminal laws.

SECTION 9. Repealing Clause — All laws, rules and regulations that may be
inconsistent with the provisions of this Act are hereby repealed or amended accordingly.

SECTION 10. Separabi Clause — If any of the sections or provisions of this Act is
adjudged invalid, all its other provisions not affected thereby shall remain in force.

SECTION 11. Effe« — This Act shall take effect fifteen (15) days after its complete
publication in the Official Gazette or in at least two (2) newspapers of general circulation,
whichever comes earlier.

Approved.