" 
SIXTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
) 
SENATE 
2441 
S.B. No. ___ _ 
Introduced by Senator JOSEPH VICTOR G. EJERCITO 
"14 
OCT 30 1\8 :31 
AN ACT REQUIRNG ACCIDENT AND LIFE INSURANCE COVERAGE 
FOR RAILWAY TRANSIT PASSENGERS 
EXPLANATORY NOTE 
The 1987 Philippine Constitution, particularly Article II, Section 5 
provides that: "The maintenance of peace and order, the protection of life, 
liberty, and property, and promotion of the general welfare are essential 
for the enjoyment by all the people of the blessings of democracy." 
This declared principle and state policy has been provided in the 
constitution for our Government to be reminded of its duty of putting the 
general welfare of the public to be prioritized at all time bearing in mind 
that part of our government's obligation is to provide a safe, efficient, 
affordable, 
and 
well-secured 
public 
transportation 
suffice 
to 
accommodate our normal daily number of our riding pUblic. 
The rail transit system in our country has become the most popular 
mode of land transportation that provides alternative for people who do 
not want to battle everyday heavy traffic, not to mention, its cheaper 
fares, as well as, one of found solution to curtail congestion in Metro 
Manila. 
The Metro Rail Transit System (MRT-3), which is a 16.9-kilometer railway 
transit system along EDSA, was constructed as part of a strategy to 
alleviate traffic congestion along EDSA. It has a fleet of 73 modem and 
air-conditioned rail cars built by CKD Doprovni System of Prague in the 
Czech Republic and were completed with its full operation in July 2000. 
The MRT was designed to carry 350,000 passengers a day!. 
On the other hand, the Philippine National Railways (PNR), which has 
been in service for about 122 years, is still in operation and currently 
utilizing 8 train sets for a total of 54 trips daily including the Premiere 
'DOTe 


'. 
, 
Commuter Train in Metro South Commuter Lines and 1 set at Naga 
for Bicol Commuter Line. Based on the PNR, through its general 
manager Allan Dilay, the train accommodates more or less 100,000 
passengers daily. 
Further, Light Rail Transit (LRT), which has been in service for more 
than 30 years, can accommodate more than 500,000 passengers 
daily.2 
Recently, several accidents have occurred resulting from mechanical 
failure as well as human error in the operation of the system. One of 
the said accidents happened on August 13, 2014, when one of the 
MRT -3 trains derailed causing it to overshoot its track at the EDSA 
corner Taft station, leaving 39 passengers injured. The incident 
prompted the DOTC to shoulder the hospital expenses of the 
unfortunate victims. 
In view of the abovementioned, it is about time for the government to 
provide the riding public some protection in the form of indemnity in 
case of accidents. As a common carrier, train operator impliedly 
promise its rider to bring each and everyone of them to their agreed 
destination safely, exercising the utmost diligence as mandated by law. 
This bill seeks to mandate all railway companies to provide accident 
and life insurance, on their account, to cover death and physical 
injuries suffered by its passengers. 
In view of the foregoing, passage of this bill is earnestly sought. 
JOSEPH VICTOR G. EJERCITO 
Z LRTA 


" 
SIXTEENTH CONGRESS OF THE I 
REPUBLIC OF THE PHILIPPINES I 
Second RegularSession 
I 
SENATE 
2441 
S.B. No. ___ _ 
Introduced by Senator JOSEPH VICTOR G. EJERCITO 
'14 
Gel 30 AS :31 
1 
AN ACT REQUIRNG ACCIDENT AND LIFE INSURANCE COVERAGE 
2 
FOR RAILWAY TRANSIT PASSENGERS 
3 
4 
Be it enacted by the Senate and House of Representatives of the Philippines 
5 
in Congress assembled. 
6 
7 
SECTION 1. Short Title. - This Act shall be known as the "Insurance for 
8 
Railway Passengers Act" 
9 
10 
SECTION 2. Declamtion of Policy. - It is the fundamental right of the 
11 
people, through the blessings of democracy, to have their lives protected 
12 
and for the government to promote the general welfare of the people for 
13 
the enjoyment of life. 
14 
15 
16 
SECTION 3. Definition of Terms. - For Purposes of these Act; 
17 
18 
(a) Passengers shall mean any person who has paid a fare to be 
19 
transported from one place to another any public railway 
20 
transportation; 
21 
22 
(b) Railway Transit System shall mean any transportation 
23 
system designed to allow passenger travel within or throughout 
24 
rural and/or urban area, usually employing surface, elevated, 
25 
or underground railway systems or some combination of these. 
26 
Railway transit system are generally considered to be mass 
27 
transit systems, capable of moving large number of passengers 
28 
in a single train; 
29 
30 
(c) Licensed Private Insurance Company shall mean any 
31 
insurance company duly registered under the Philippine laws 
32 
and under the Securities and Exchange Commission and doing 
33 
business in the Philippines; 
34 
35 
(d) Fortuitous Event shall m~an an event of natural or human 
36 
Origin that could not have been reasonably foreseen or expected 
37 
and is out of control of the person concerned; 
38 
39 
(e) Force MaJeure shall mean an event that is a result of the 
40 
elements of nature, as opposed to one caused by human 
41 
behavior; 


1 
2 
(fl Beneficiaries are the spouse until he or she remarries and the 
3 
legitimate, legitimated or legally adopted and illegitimate 
4 
children, who shall be the primary beneficiaries of the member. 
5 
Provided, that the illegitimate children shall be entitled to one-
6 
half of that of the legitimate, legitimated or legally adopted 
7 
children. Provided further, that in the absence of the legitimate, 
8 
legitimate children 
of the member, 
his/her dependent 
9 
illegitimate children shall be entitled to one hundred percent 
10 
(100%) of the benefits. In their absence, the parents who shall 
11 
be the secondary beneficiaries of the member. In the absence of 
12 
all the foregoing, any other person designated by the member 
13 
as his/her secondary beneficiary; 
14 
15 
(g) DOTe refers to the Department of Transportation and 
16 
Communication; 
17 
18 
(h) BIR refers to the Bureau of Internal Revenue. 
19 
20 
21 
SECTION 4. Commencement and Termination o/Coverage. -The insurable 
22 
interest, pursuant tb Chapter I Title 3 of Presidential Decree No. 612, 
23 
otherwise known as the Insurance Code of the Philippines, shall 
24 
commence from the time the passenger has procured the ticket with the 
25 
intent to board the train, and shall end at the time such passenger shall 
26 
have alighted the train and leaves the station up to 10 meter radius of 
27 
the premises. 
28 
29 
SECTION 5. Liability / Non-Liability of the Insurance Company. 
30 
5.1 Accident and life insurance shall cover death and Physical injuries 
31 
suffered by the passenger to wit: 
32 
33 
(a) Malicious and/or negligent acts of another person including 
34 
but not limited to, the railway officers, employees, passengers, 
35 
and other person not considered passenger or employee of the 
36 
railway transit; 
37 
(b) By effective trains, cars, construction, articles, parts or 
38 
amenities of the railway transit; 
39 
(c) Fortuitous event; 
40 
(d) Force Majeure. 
41 
42 
5.2 When the insurance company is NOT liable; 
43 
44 
No proceeds from the insurance company shall be payable if the 
45 
passenger dies or suffers injury due to: 
46 
47 
(a) Suicide or attempted suicide by passenger victim; 
48 
(b) Self-inflicted injury; 
49 
(c) His own criminal act; 
50 
(d) Any act committed by passenger victim in a state of insanity; 
51 
(e) Any natural cause or disease or medical or surgical treatment 
52 
unless such treatment becomes necessary due to injury caused 
53 
by the said untoward incident; and 
54 
(fl Any act committed by passenger victim in violation of rules and 
55 
regulations of the railway company. 
56 


1 
SECTION 6. Administration of the Insurance Policy. -
shall be by a 
2 
licensed private insurance company duly organized under Philippine laws 
3 
and awarded by the DOTC, following the provisions and mandate of 
4 
Republic Act 9184, also known as the Government Procurement Reform 
5 
Act. 
6 
7 
SECTION 7. Payment of Premium. - The railway company shall pay the 
. 8 
insurance premium. Such payment will come from their gross income 
9 
and it shall be considered as a tax credit in favor of the railway 
10 
company's corporate income tax liabilities for the following fiscal year. 
11 
12 
SECTION 8. Benefits. - Notwithstanding any benefits provided by any 
13 
institution to the insured, the insured shall be entitled to the following 
14 
benefits: 
15 
16 
Death Benefits -
The amount of TWO HUNDRED THOUSAND 
17 
PESOS (P200,OOO.OO) shall be awarded to the beneficiaries in case the 
18 
passenger victim died. 
19 
20 
Hospitalization Benefits 
- an amount not exceeding ONET 
21 
HOUSAND FIVE HUNDRED PESOS (Pl,500.00) per day of hospitalization 
22 
bills and other medical expenses shall be awarded to the insured or the 
23 
beneficiaries. Provided however that the total amount shall not exceed 
24 
ONE HUNDRED FIFTY THOUSAND PESOS (PI50,000.OO). Provided 
25 
further, that if the passenger died and the cause of the death is the 
26 
incident and have been receiving hospitalization benefits, his/her 
27 
beneficiaries shall be entitled to receive TWO HUNDRED THOUSAND 
28 
PESOS (P200,000.00) death benefit. 
29 
30 
The benefit received by the passenger victim under this Act is 
31 
without prejudice to the right of such passenger victim of his right to file 
32 
a case under existing law. 
33 
34 
SECTION 9. Implementing Rules and Regulations. - Within sixty (60) days 
35 
from the approval of this Act, the DOTC and the BIR, in coordination 
36 
with government agencies concerned, shall issue the rules and 
37 
regulations to effectively implement the provision of this Act. Any 
38 
violation of this section shall render the concerned official/ s liable under 
39 
Republic Act No. 6713, otherwise known as the Code of Conduct and 
40 
Ethical Standards for Public Officials and Employees and other existing 
41 
administrative and/or criminal laws. 
42 
43 
SECTION 10. Separability Clause. - If any portion or provision of this Act 
44 
is declared unconstitutional or invalid, the other provisions hereof not 
45 
affected thereby shall remain valid and effective. 
46 
47 
SECTION 11. Repealing Clause. - All laws, executive orders, presidential 
48 
decrees, presidential proclamations, rules and regulations or parts 
49 
thereof inconsistent with the provisions of this Act are hereby repealed or 
50 
modified accordingly. 
51 
52 
SECTION 12. Effectivity. - This Act shall take effect fifteen (15) days after 
53 
its publication in the Official Gazette or in at least (2) newspaper of 
54 
general circulation. 
55 
56 
Approved,