Protection for commuters

The Christmas holidays bring joy, hope and inevitably, tremendous traffic. For millions of Filipinos who rely on public transportation, congestion is not merely an inconvenience but a daily exposure to risk that the government must help mitigate. 

With mass transit railways and subways progressing slowly due to right-of-way constraints, and with vehicle counts on the road increasing year after year, commuters remain heavily dependent on public utility vehicles (PUVs) operating in heavy traffic conditions around the clock.

For these commuters, insurance is not a luxury but a vital layer of protection. Through the Passenger Personal Accident Insurance (PPAI) program, passengers are assured that in every accident involving a PUV, a passenger or beneficiary may receive benefits of up to₱P400,000 for death or injuries caused by any risk. 

This guarantee provides immediate financial relief at moments when families are most vulnerable, reinforcing the State’s constitutional duty to promote social justice and protect life.

The Land Transportation Franchising and Regulatory Board (LTFRB), led by Chairman Vigor Mendoza, is at the forefront of this protection. 

By requiring compulsory passenger insurance as a condition for the issuance and renewal of PUV franchises, the LTFRB embeds insurance coverage directly into the public transport regulatory framework. Insurance compliance is integral to the privilege of operating a PUV, consistent with the doctrine that franchises are subject to continuing regulation under the State’s police power.

The Insurance Commission (IC), under the leadership of Commissioner Reynaldo Regalado, complements this framework by ensuring that the PPAI Program is implemented through accredited Management Companies supported by a consortium of at least 13 non-life insurance companies. 

Each participating insurer has met the required net worth of P1.3 billion, resulting in a combined consortium net worth of at least P17 billion, which is more than sufficient to ensure the prompt payment of claims to the commuting public.

The recent accreditation of Management Companies for the 2025–2030 period concluded on 30 November, coinciding with Bonifacio Day. 

The IC’s decision to accredit three Management Companies — PAMI, SCCI and the new entrant, Centerstar Management and Insurance Agency — must be viewed through the lens of public convenience and necessity. In regulatory doctrine, monopolies in delegated public services are disfavored, particularly where scale, risk and public reliance are high.

For the LTFRB, increased administrative capacity directly enhances regulatory efficiency. Insurance verification delays often spill over into franchise renewals and enforcement actions. 

With three management companies, operators gain better access to compliance channels and claims recovery, reducing bottlenecks, disputes and unnecessary regulatory friction. 

Higher compliance rates, in turn, strengthen the credibility of enforcement.

Critically, plurality does not dilute public protection. Insurers remain licensed and supervised, Management Companies remain accountable and both the IC and LTFRB retain full regulatory authority. What improves is delivery, i.e., the system becomes more resilient, responsive and scalable.

Public transport insurance is part of the State’s protective function. By strengthening PPAI administration through PAMI, SCCI, and Centerstar, under the stewardship of the IC and LTFRB, the government ensures that when accidents occur, protection is real, immediate and meaningful for the commuting public.