President Ferdinand R. Marcos Jr. has ordered transportation agencies to boost insurance benefits for private vehicles, aligning them with those provided to public utility vehicles (PUVs), to better protect passengers and address gaps in compensation for victims of deadly road accidents.
Transportation Secretary Vince Dizon confirmed the directive in a media briefing Thursday at Malacañang, saying the President wants private vehicle insurance upgraded to match the Passenger Personal Accident Insurance (PPAI) standard for PUVs, which covers up to PHP400,000 for death and PHP100,000 for injuries.
Currently, insurance for private vehicle passengers is capped at a total of PHP200,000, regardless of the number of casualties. This became a growing public concern after several major road accidents.
“Unang-una, alam naman natin kabilin-bilinan ng Pangulo na ang priority natin ‘yung safety ng ating mga pasahero… so ang insurance napaka-importante niyan,” Dizon said.
“Ang panawagan ng Pangulo: itaas nang todo ang insurance… itapat ang insurance sa pribado doon sa PUV. Tingin ko napakagandang ideya po niyan at ‘yan po ang pipilitin nating magawa,” he added.
The Department of Transportation (DOTr), in coordination with the Land Transportation Office (LTO) and Land Transportation Franchising and Regulatory Board (LTFRB), is now working to implement the order. Dizon said the target is to roll out the updated policy before the end of 2025.
Calls for reform intensified after tragic incidents like the December 2024 Katipunan Flyover crash, which left four dead and over 20 injured, with victims’ families receiving only PHP200,000 in total insurance payouts. A similar issue arose in the SCTEX pile-up that killed 10 people.