LTFRB: PHP10 "Insurance" Collected by Bus Companies is Illegal

Following numerous complaints from the public that bus companies were reportedly asking their customers on provincial routes from Metro Manila to pay an additional PHP10 on top of their fare for "passenger insurance," the Land Transportation Franchising and Regulatory Board (LTFRB) has clarified that the practice is illegal and that the fare they've paid for the trip already has the cost of an equivalent insurance factored into it already.

According to LTFRB Board Member Atty. Aileen Lizada, comprehensive passenger insurance packages from Passenger Accident Management and Insurance Agency, Inc. (PAMI) under UCPB General Insurance Company, Inc. and SCCI Management and Insurance Agency Corp. under AlliedBankers Insurance Corp. are already factored into the fares of the passengers, which is why bus companies should not charge the additional PHP10 fee.

In response, the LTFRB will have its enforcers check the ticketing booth of bus stations to make sure that this illegal practice is stopped.

Lizada added that the insurance premiums of not just the bus companies but all public utility vehicles will be increased so that the current PHP200,000 death benefit will go up to PHP400,000 "so there is really no need for them to increase their insurance."

Lizada also confirmed that this will be rolled out soon once everything has been finalized with the two insurance companies and the Insurance Commission.