Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. 6680

Introduced by Hon. HARLIN NEIL J. ABAYON, III

EXPLANATORY NOTE

‘The many incidents resulting to injuries and deaths along our country’s light
rails and railways highlight the need for the provision of insurance coverage meant
to make sure all victims are properly compensated and the government is also
protected as to liability costs.

The Department of Transportation (DOTr) cannot keep on drawing money
from its discretionary funds to pay for hospitalization and recovery expenses of
victims, Considering how frequent the accidents and failure incidents are happening,
that would be unwise management of public funds. Insurance is the appropriate long-
term solution.

While DOT is still working out their solutions to MRT, PNR, and LRT woes,
the viable way to respond to passenger injuries and deaths should include insurance
solutions. No man-made system can ever be perfect or 100 percent efficient. There
will be incidents and accidents (two different things) and that is why there must be
insurance,

‘There are different ways to go about this. One way is via microinsurance on a
Per passenger per trip basis. Another way is for the different rail firms to get
insurance covering their entire networks. Yet another approach is for the rail firms
to require their maintenance and operations service providers to get the insurance
coverage.

Bottom line is the cost to the riding public and the government must be

reasonably minimal or hardly felt. Higher fare rates must not be the result of the
insurance coverage for these incidents.

Page | af 4


Swift passage of this bill is earnestly sought.

HARLI J. ABAYON III
Representative, AANGAT TAYO Party-list


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. 6680

—
Introduced by: Hon, HARLIN NEIL J. ABAYON III
————$$—

AN ACT
REQUIRING ALL OPERATORS, FRANCHISE HOLDERS, AND
SERVICE PROVIDERS OF MASS TRANSPORT PASSENGER TRAINS
AND LIGHT RAIL SERVICES TO ACQUIRE COMPREHENSIVE THIRD-
PARTY LIABILITY INSURANCE COVERAGE
FOR THE WELFARE OF THE RIDING PUBLIC

Be it enacted by the Senate and the House of Representatives of the
Philippines in Congress assembled:

Section |. Short Title. - This Act shall be known as the “Comprehensive
Third-Party Liability Insurance for Rail and Light Rail Mass Transport Act’.

Section 2. Third Party Liability Insurance Coverage. All operators,
franchise holders, and service providers of mass transport passenger trains and light
rail, whether public or private-owned or managed, are hereby required to have
comprehensive third-party liability insurance (CTPLI) for the protection and welfare
of the riding public.

Section 3. Implementing Rules and Regulations. The Insurance
Commission, Government Service Insurance System, Social Security System,
Bangko Sentral ng Pilipinas, and Department of Transportation shall jointly
formulate and promulgate, in consultation with the insurance industry, the
implementing rules, regulations, and insurance mechanisms to implement this Act.

The insurance mechanisms may involve one or a combination of different
insurance solutions: (1) microinsurance per passenger per trip; (2) insurance for
entire or components of rail networks; (3) insurance coverage bore by service

Page 3 of 4


providers; and (4) insurance that includes coverage for calamities and other
fortuitous events,

Section 4. Separability. - If any provision or part of this Act is declared
invalid or unconstitutional, the remaining parts or provisions not affected shall
continue to be in full force and effect.

Section 5. Repealing Clause. - All laws, executive orders, and administrative
orders or parts thereof inconsistent with any provision of this Act are hereby repealed
or amended accordingly.

Section 6, Effectivity Clause, - This Act shall take effect fifteen (15) days
after its publication in the online version of the Official Gazette or in two (2)
newspapers of general circulation or with established internet website presence.

Approved.

Page 4 of 4