Republic of the Philippines > 4
HOUSE OF REPRESENTATIVES TOMAY 2012
Quezon City { duty Pete

FIFTEENTH CONGRESS ‘ Sa

Second Regular Session

House BILLNO.__ 6174
Introduced by REP. ANTHONY G. DEL ROSARIO

EXPLANATORY NOTE

This bill seeks to require the operators of public transport services to secure
comprehensive insurance coverage for their public utility vehicles to protect victims of
vehicular accidents arid themselves from the high cost of damages, repairs and liability
payments incurred because of collision, fire or theft.

Section 374 of the Insurance Code, as amended, compels operators of public
utility vehicles to secure third party liability insurance or surety bonds in order to assure
victims of vehicular accidents, immediate financial assistance or indemnity regardless of
the financial capability of the operators responsible for the accident sustained
Presently, Insurance Memorandum Circular No. 4-2006 limits the third party or
passenger liability for all Compulsory Motor Vehicle Liability Insurance (CMVLI)
coverage to One Hundred Thousand Pesos (P100,000.00).

The proposed measure mandates all operators of public transport service to
secure compulsory comprehensive insurance for their motor vehicles which shall
include coverage for own damage and theft, bodily injury and property damage and
passenger personal accident.

The sense of responsibility and accountability exercised by private motor vehicle
‘owners should be similarly demanded from public land transport operators, specifically,
of buses and taxicabs because they are in the business of providing service to the vast
majority who depend on public transport as the cheaper means of transportation. It is
the operators’ paramount obligation, more than the drivers’, to ensure the safety of their
passengers, their vehicles, third parties and properties of third parties.

In view of the foregoing, approval of this bill is highly and earnestly
recommended.

ATH G. DEL ROSARIO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
‘Second Regular Session

HOUSE BILL NO. 6i74

Introduced by REP. ANTHONY G. DEL ROSARIO.

AN ACT
MANDATING ALL PUBLIC UTILITY VEHICLE OPERATORS TO SECURE
COMPULSORY COMPREHENSIVE INSURANCE COVERAGE FOR THEIR MOTOR
VEHICLES AND PROVIDING PENALTIES FOR VIOLATION THEREOF

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

SECTION 1. Short Title. — This Act shall be known as the “Public Utility Vehicles’

Comprehensive Insurance Act.”

SEC. 2. Declaration of Policy. — It is hereby declared the policy of the State
to afford protection and ensure the safety of its citizens, particularly the passengers of
public transport services, vehicles and properties, from the risks of vehicular accidents,
fire or theft. Towards this end, the State shall mandate the public utility vehicle
operators to secure compulsory comprehensive insurance coverage for their motor
vehicles in order to defray the high cost of damages, repairs and liability payments
incurred because of collision, fire or theft.

SEC. 3. Definition of Terms. — As used in this Act:

a) “Passenger” refers to any fare paying person being transported and
conveyed in and by a motor vehicle for transportation of passengers for compensation,
including persons expressly authorized by law or by the vehicle's operator or his agents
to ride without fare;

b) “Public utility vehicle” refers to a motor vehicle, either a taxicab, public
utility jeepney (PUJ), public utility bus (PUB), except tricycle or motorcycle, used to ferry

passengers from their point of origin to their destination;


c) “Operator” refers to any person who has been issued a Certificate of
Public Convenience by the Land Transportation Franchising and Regulatory Board
(LTFRB) to operate a public transport service for compensation and for a covered
period of time; and

4) ‘Compulsory Comprehensive Insurance Coverage” refers to auto
insurance protection that covers the insured driver and vehicle, the third party driver and
vehicle, and third party property in case of collision, fire or theft.

SEC. 4. Compulsory Comprehensive Insurance Coverage. = —
Notwithstanding the requirement of securing a compulsory motor vehicle liability
insurance as a condition precedent for vehicle registration under Section 374 of the
Insurance Code, all operators of public transport service shall be required to secure a
comprehensive insurance coverage for their motor vehicles, particularly:

a) Own Damage and Theft - Coverage against theft, loss or accidental
damage to the vehicle;

b) Voluntary Third Party Liability (VTPL) - Coverage up to a particular
amount that is applied after exhausting the limited liability amount of P100,000.00 as
provided under the compulsory third party liability insurance, including:

(1) Bodily Injury — reimbursement of medical costs for victims of the
vehicular accident.

(2) Property Damage — liability for property damage caused by the
insured vehicle against a third party vehicle or property; and

c) Passenger Personal Accident — Coverage against death or bodily injury
sustained by passengers of the insured vehicle due to accidents while riding the insured
vehicle.

SEC. 5. Penal Provision. - Any operator of public transport service who
violates any provision of this Act shall, upon conviction, suffer the penalty of a fine of not
less than Ten Thousand Pesos (P10,000.00) but not more than Fifty Thousand Pesos

(P50,000.00) and suspension of the franchise to operate until such time that the


operator shall have complied with the requirement of securing a compulsory
comprehensive insurance coverage for their motor vehicles.

SEC. 6. Implementing Rules and Regulations. — The Chairman of the Land
Transportation Office (LTO) shall, in coordination with the Chairman of the Land
Transportation Franchising and Regulatory Board (LTFRB) and the Commissioner of
the Insurance Commission, issue the necessary rules and regulations for the effective
implementation of this Act.

SEC. 7. Repealing Clause. — Sections 374 and 376 of the Insurance Code,
as amended, and all other laws, decrees, orders, rules and regulations, or parts thereof,
inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

SEC. 8. _ Effectivity. — This Act shall take effect fifteen (15) days after
Publication in the Official Gazette or in two (2) national newspapers of general
circulation.

Approved,