AMENDING MEMORANDUM CIRCULAR NO. 99-011 (PASSENGER ACCIDENT INSURANCE REQUIREMENT FOR PUV OPERATORS)
Accident Insurance Requirement for PUV operators dated June 22, 1999,
the sixth and eight paragraphs of which read as follows:
“Furthermore, to ensure public safety along our roads and
considering that accidents can happen any time, all passenger public
utility operators are hereby directed to submit proof of compliance of
this Memorandum Circular under oath, by attaching thereto a copy of the
insurance policy or proof of coverage, specifying therein the LTO
license plates, the motor and chassis numbers of the unit/s covered,
case number of the decision granting the franchise and the type of
service offered or franchise held, within sixty (60) days from the
effectivity of this Order.xxx xxx xxx
In case of failure to secure said insurance policy/coverage
within the period provided for above, the certificate of public
convenience of the PUV operators shall be suspended until the operator
complies with this circular. If after the lapse of fifteen (15) days
from the initial date of suspension, and the operator still has not
submitted any proof of compliance, the penalty imposable shall be
cancellation of the certificate of public convenience issued to the
operator concerned”.
During the implementation of this circular, truck-for-hire
operators, through their association, requested that they be exempted
from the circular as they do not carry passengers.
After further and careful deliberation on the matter, this Board
hereby deletes the entire paragraphs six and eight of said Memorandum
Circular No. 99-011. Likewise, truck-for-hire operators are exempted
from securing Passenger Accident Insurance Coverage. Provided, however,
that TH operators using Asian Utility Vehicles (AUVs) to carry both
cargo and passengers (e.g. those based in NAIA) shall still be covered
by this Memorandum Circular.
To ensure accident insurance coverage for passengers at all times,
for hire vehicles must be covered by this insurance policy from the
issuance of Certificate of Public Convenience. Pursuant hereto, no
decisions, orders and/or confirmations shall be released to those
concerned public utility vehicle operators without presenting proof of
compliance to this Memorandum Circular, i.e., Certificate of Cover duly
approved by the Insurance Commission and issued by an insurance company
accredited by the Insurance Commission specifically for this purpose.
The coverage could either be a full year coverage or partial coverage
depending on the last digit of the license plate of the vehicle.
All operators who were able to register their unit/s without
securing a Passenger Accident Insurance due to the suspension of the
implementation of Memorandum Circular No. 99-011, are hereby directed to
secure the same upon the effectivity of this Memorandum Circular.
All Regional Directors are hereby instructed to accept only the
Certificate of Cover approved by the Insurance Commission from those
insurance companies accredited by the Commission to participate in the
program. A list of accredited insurance companies whose Certificate of
Cover and Master Policy forms have been duly approved by the Insurance
Commission shall be provided the Regional Directors and shall be posted
in the Board’s premises nationwide for the information and guidance of
all concerned.
All Regional Directors are likewise instructed to submit to the
Office of the Chairman by the first week of each month, summary report
on the previous month’s certificates of coverage submitted by the
operators indicating in said report the following information: name of
operator, case number, insurer, serial number of the certificate of
cover, date of issue thereof.
All issuances, or parts thereof, inconsistent herewith are hereby deemed modified, superseded/revoked accordingly.
This amendatory circular shall take effect fifteen (15) days after
the filing of three (3) copies hereof with the U.P. Law Center, pursuant
to Presidential Memorandum Circular No. 11 dated 09 October 1992.
Adopted: 31 March 2000
(SGD.) DANTE M. LANTIN
Chairman
(SGD.) REMEDIOS G. BELLEZA
Board Member