LCSP urges DoF to stop expansion of PPAI insurance pools

The Lawyers for Commuters Safety and Protection has urged the Department of Finance to stop the planned expansion of the Passenger Personal Accident Insurance (PPAI) Program for public utility vehicles.

LCSP disclosed Sunday that it sent a letter to Finance Secretary Frederick Go dated 8 January, opposing provisions in Insurance Commission Circular Letter No. 2025-17. The circular removes the previous limitation of two insurance pools under the PPAI program, effective 1 December 2025.

LCSP founder and president Atty. Ariel Inton Jr. said the group has serious concerns over the directive, warning that commuters — who are the primary beneficiaries of the PPAI — could be adversely affected.

Inton said the long-standing two-consortium system has provided stability for transport operators and reliable insurance coverage for passengers.

“To date, there is no major complaint against this system that would warrant an expansion which if not addressed by the Board may create problems such as fake insurance coverage, delayed claims and unhealthy competition,” Inton said.

He stressed that expanding the program from two to three management companies is not a simple administrative change.

“It affects risk pooling, claims processing, premium stability and program oversight. Such change if any, should strictly comply with the applicable Terms of Reference (TOR), accreditation guidelines, and evaluation criteria governing the PPAI Program,” Inton said.

“To date, we have not heard of any public explanation of these standards, nor disclosure of how the newly accredited entity and its consortium complied with such,” he added.

Inton further raised transparency concerns, saying the Insurance Commission directive runs counter to the constitutional mandate for full public disclosure in transactions involving public interest.

“Who are the consortium members of this third player, their financial capacity to withstand financial and operational exposure of transport operators and commuters as well. All of these are issues that should be fully disclosed and addressed,” the LCSP urged.

The group noted that the PPAI framework for PUVs is governed by Land Transportation Franchising and Regulatory Board Memorandum Circular 2001-001 and was upheld by the Supreme Court in Eastern Assurance vs. LTFRB (G.R. No. 149717, 7 October 2003) as a valid exercise of police power.

“Thus, considering that the directive of the Insurance Commission is just HALF of the equation and that there is no LTFRB MC that exist yet to govern more than two management companies, the entry of this third player should beenjoin pending resolution of transparency and other concerns,” Inton said.

Sources from the LTFRB and the Insurance Commission told DAILY TRIBUNE that the third insurance company being considered is linked to controversial government contractor spouses Curlee and Sara Discaya.