Philippines’ insurance regulator supports increasing insurance benefits

However, the move would lead to an increase in premiums, says senior leader

Philippines’ insurance regulator supports increasing insurance benefits

Insurance News

By Paolo Taruc

The Philippines’ insurance industry regulator has voiced its support for an increase of insurance benefits for passengers of public transportation such as buses, taxis, and jeepneys. However, the move would lead to an increase in premiums.

“As the public transportation in the country continues to evolve, it has become very important for all PUVs to have sufficient insurance coverage for the protection of the riding public in the event of accidents,” said Dennis Funa, head of the Insurance Commission.

Under Philippine law, operators of public transportation are required to secure insurance through government-accredited insurance companies. According to a study by the Philippine Insurers and Reinsurers Association, existing premium rates could no longer sustain the proposed increase in benefits.

“Thus, it proposed that the premium rates be increased,” said Funa.

A public consultation by the regulator has called for the existing Php200,000 death benefit to leap to Php400,000, and the existing Php20,000 medical reimbursement benefit to rise to Php100,000. There have also been calls to include a family allowance benefit to the maximum amount of Php30,000 in case of hospitalization and Php7,000 during interment.

According to the Insurance Commission, the last increase in passenger benefits was implemented in 2015 with no corresponding increase in premium rates, except for the bus segment which was increased by Php500.

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