Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
First Regular Session
HOUSEBILLNo.7918
Introduced by Representative lrwin C. Tieng
EXPLANATORY NOTE
Parking  establishments  may  be  classified  according  to  the  manner  by  which  they
transact their business:  on one hand, a parking establishment may involve a "park and lock"
where the vehicle owner parks in any available space, locks his vehicle, and retains possession
of the key; on the other, it may also involve a parking establishment where the vehicle owner
leaves the key to an attendant who will park and retrieve the vehicle for the customer.
This bill seeks to address the mounting complaints of accidents, camapping, theft and
robbery in paid parking establishments located in hotels, shopping malls, restaurants, hospitals,
and  other  retail  and  commercial  establishments  that  are  supposed  to  provide  safe  and  free
parking spaces to their customers as part of the service they are supposed to  provide.
With the current surge in the number of vehicles, the owners and operators of parking
establishments  have  effectively  built  a  money-making  scheme  through  charging  exorbitant
parking fees to its customers. The customers, who are in constant need of parking space, are
then left with no choice but to pay these fees.
Also, these owners and operators of parking establishments impose a waiver of liability
for any  injury, loss, or damage suffered by their customers-undermining the fact that their
customers pay for the use of the facilities thereby giving them a reasonable expectation that
these parking establishments will exert extra effort to safeguard their vehicles. With the amount
of parking fees collected on a daily basis, these parking establishments should not be allowed
to evade liability in upholding the safety of their customers, and the security of the customers'
vehicles and other belongings.
Consequently, there is a need for legislation that would make owners and operators of
parking establishments liable for the injury, loss, or damage suffered by their customers. In this
wise, owners and operators of parking establishments should be required to provide adequate


security  measures,  and  obtain  an  insurance  policy  which  shall  afford  to  the  customers  a
legitimate  recourse  for  injury,  loss,  or damage  sustained  within the parking establishment's
premises.
In  view  of the  foregoing,  immediate  consideration  and  passage  of this  bill  is  most
earnestly requested.


Republic of the Philippines
HOUSE 0F REPRESENTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
First Regular Session
HOUSEB|LLNo.7918
Introduced by Representative lrwin C. Tieng
AN ACT DEFINING THE RESPONSIBILITES AND LIABILITIES OF OWNERS
AND OPERATORS OF PARKING ESTABLISHMENTS, REQUIRING AN
INSURANCE POLICY FOR THE OPERATION OF PARKING ESTABLISHMENTS,
AND PRESCRIBING PENALTIES FOR NON-COMPLIANCE THEREOF
Be  it  enacted  by  the  Senate  and  House  of Representatives  of the  Philippines  in  Congress
assembled:
SECTION I. Short Title. -This Act shall be known as the  "Pcrrki.#g Es/czb//.sAme#ts Lj.crb7./I.ty
Act- „
SEC. 2. Declaration of Policy. -It is the policy of the State to promote public safety and the
general welfare of customers who avail of the facilities in paid parking establishments. Toward
this   end,   the   State   shall   promulgate   measures  that   will   protect   customers   of  parking
establishments  by  making  the  owners  and  operators  thereof  liable  for  injuries,  losses,  or
damages arising from the conduct of their business.
SEC. 3. Der]nition of Terms. -As used in this Act, the following terms are defined as follows:
(a) Porfo.Hg cs/obJisrfemc"ts refer to spaces in hotels, motels, hostels, inns, resorts,
lodging facilities,  corporate offices or facilities,  food  service establishments,
health   service   establishments,   retail   establishments,   and   all   other  similar


estabhshments, designated for customers to temporarily leave their vehicles for
a  fee.   This  shall   also   include   independently-owned   facilities  allotted  for
customers to temporarily leave their vehicles for a fee.
(b) Ow"cr refers to a natural or juridical person who holds legal and/or beneficial
title, deed, or right of occupancy to a parking lot.
(c)  Opcr¢tor refers to a natural  or juridical  person that manages the day-to-day
operations of parking establ ishments.
(d) Cwstomer refers to a person who pays a fee to avail of the facilities in a parking
establishment.
SEC. 4. Coverage of this Act. -This Act shall cover all parking establishments that charge a
parking fee for the use of their premises and facilities.
SEC.   5.   Responsibilities   and   Liabilities   of   Owners   and   Operators   of   Parking
Establishments. -Owners and operators of parking establishments shall maintain and provide
adequate security measures in their parking establishments such as, but not limited to, security
guard  patrols,   video  surveillance  cameras,   security   lighting,   and  directional   and   safety
signages.
Except in cases where the customers are fully at fault or negligent, the owners and operators of
parking establishments shall be liable for injuries to the customers, as well as for any loss or
damage to the customers' vehicle and/or belongings. The said owner and operator shall also be
liable in case of force majeure, acts of God, and other natural disasters.
The  customer  claiming  damages  shall  have  the  burden  of proving that  the  injury,  loss,  or
damage was sustained within the premises of the parking establishment, without his fault or
negligence. Such injury, loss, or damage shall bepr/.rna/¢ci.a presumption of fault or negligence
on the part of the parking establishment's owner and operator.


The contributory  negligence of the customer does not bar the recovery  of damages for the
injury,  loss,  or damage  if the  proximate  cause  thereof is  the  negligence  of the  owner and
operator of the parking establishment, but the amount of damages shall be equitably reduced.
Any  waiver  of liability  in  cases  of injury  to  the  customer,  or  the  loss  or  damage  to  the
customer's vehicle and belongings shall be void for being contrary to public policy.
SEC. 6. Mandatory Insurance Coverage. -Owners and operators of parking establishments
shall  be  required  to  obtain  and  continuously  maintain  in  full  force  and  effect an  insurance
policy, in the amount as may be provided jn the lmplementing Rules and Regulations, to cover
the  liabilities  referred  to  in  the  immediately  preceding  paragraph,  from  an  insurer  duly
authorized to transact insurance business in the Philippines, as provided in Republic Act No.
10607, otherwise known as the Insurance Code of the Philippines.
The requirements under Section 5 and Section 6 of this Act shall be considered as a condition
precedent  for the  initial  issuance  or renewal  of a business permit and  license  to  operate  a
parking establ ishment.
A grace period of six (6) months from the effectivity of the Act shall be provided for owners
and  operators  to  provide  security  measures  in  their  parking  establishments  and  obtain  an
insurance policy pursuant to Section 5 and Section 6 of this Act.
SEC.  7.  Penalties  and  Fines.  -   Owners and operators who  shall  fail  to provide adequate
security measures and obtain an insurance policy after the grace period shall be fined with not
less than One  Hundred  Thousand  Pesos (Phploo,000.00)  but not more than Three Hundred
Thousand Pesos (Php300,000.00) for every month of non-compliance.
Additionally, owners and operators who shall continuously fail to comply with the foregoing
requirements for six (6) months or more following the lapse of the grace period shall also be
penalized  with  the  suspension  or  cancellation  of business  permits  and  licenses  as  may  be
determined under the lmplementing Rules and Regulations.
SEC. 8. Implementing Rules and Regulations. -Within sixty (60) days from the approval of
this Act, the Department of Trade and Industry shall, in consultation with the Department of


Interior and Local Government, the Department of Finance, and the Insurance Commission,
formulate  and  promulgate  the  necessary  rules  and  regulations  to effectively  implement the
provisions of this Act.
Within three (3) years after the effectivity of this Act and every three (3) years thereafter, the
Secretary  of Trade  and  Industry,  in consultation  with  the  Insurance  Commission,  is  hereby
authorized to determine the amount of insurance coverage which the owners and operators are
required to secure for their parking establishment.
SEC.  9.  Separability  clause.  -  If any  provision  of this  Act  or  the  applicability  of such
provisions  to  any  person  or  circumstance  shall  be  held  invalid.  the  validity  of the  other
provisions of the Act and the applicability of such provisions to other persons or circumstances
shall not be affected thereby.
SEC. 10. Repealing clause. -All laws, executive issuances, orders and rules and regulations
contrary to or inconsistent with this Act, or any part thereof, are hereby repealed, amended
and/or modified accordingly.
SEC.11. Effectivity. -This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in a newspaper of general circulation.
Approved,