Uber, Grab to provide full insurance coverage to passengers

Transportation network companies (TNCs) have agreed to provide comprehensive insurance coverage to commuters. Land Transportation Franchising and Regulatory Board (LTFRB) spokesperson Aileen Lizada said Uber and Grab have agreed, during its technical working group meeting Wednesday afternoon, to comply with its memorandum circular providing for an enhanced personal accident insurance program.

“We directed TNCs to provide insurance coverage the same as LTFRB is providing extensive coverage and all risk policy. We asked both Uber and Grab to improve the coverage that their TNVS (transport network vehicle services) should be having,” Lizada said in an interview with the Philippine News Agency (PNA).

The Board has partnered with the Passenger Accident Management and Insurance Agency Inc. (PAMI) and SCCI Management and Insurance Agency Corporation (SCCI) for its insurance coverage.

Under LTFRB Memorandum Circular 2015-028, passengers of public utility vehicles are entitled to monetary benefits from PHP3,000 to PHP200,000 including accidental death and other injuries.

Usually, only TNVS units with provisional authority (PA) and certificate of public convenience (CPC) have government-mandated PAMI coverage since these are recognized by the LTFRB to have legitimate operations.

Grab’s insurance policy mandates that those without PA or CPC should be enrolled to an insurance premium while those with PAs/CPCs get the same on top of PAMI.

As such, all TNVS drivers accredited by Grab are covered by insurance and passengers can settle claims against the ridesharing firm.

The LTFRB earlier said Uber offers limited insurance coverage compared to its competitor that has no fault indemnity clause and all-risk coverage. A no-fault indemnity insurance clause assures that the insurance company will pay for damages incurred regardless of whose fault has caused the accident.

An all-risk insurance policy provides broader coverage as it insures passengers for losses that might arise from any extreme conditions.

LTFRB will issue stickers for the identification of TNVS units with PAs or CPCs, Lizada said.

The TNCs also agreed that their partner TNVS drivers and operators will participate in the Drivers Academy for public utility vehicles (PUV) which was established by the LTFRB to ensure road safety and discipline.

Some of the issues that were also discussed in the meeting were: penalties for erring drivers; accountability of the TNCs; fare discounts and determination; and fleet management.

The LTFRB plans to issue a memorandum circular by September that will set a limit to the number of TNVS units that will be operated by Uber and Grab.