Philippines Boosts Insurance Coverage for Private Vehicle Occupants
The Philippine government has directed transportation officials to increase insurance benefits for private vehicle occupants to match those provided to public utility vehicle (PUV) passengers. This move aims to improve compensation for victims of road accidents.
Transportation Secretary Vince Dizon confirmed the directive in a media interview on Thursday, stating that President Ferdinand R. Marcos Jr. wants private vehicle insurance coverage aligned with the Passenger Personal Accident Insurance (PPAI) required for PUVs. The PPAI provides up to $7,195.67 (₱400,000) in death benefits and $1,798.92 (₱100,000) for injuries per passenger.
Currently, private vehicles offer a total insurance payout of only $3,597.83 (₱200,000), regardless of the number of passengers affected. This disparity has come under public scrutiny following recent fatal road accidents, including the December 2024 Katipunan Flyover crash that killed four and injured over 20. In that incident, families received only $3,597.83 in total insurance payouts, which was split amongst all victims.
The Department of Transportation (DoTr) is now working with the Land Transportation Office (LTO) and the Land Transportation Franchising and Regulatory Board (LTFRB) to implement the policy. The government is targeting rollout before the end of 2025.
This decision comes after recent incidents highlighted the insurance gap. A similar compensation shortfall was reported following a deadly pile-up on the Subic–Clark–Tarlac Expressway (SCTEX) that killed 10 people.
The increased insurance coverage is expected to provide better financial protection for victims of road accidents and their families. The move aligns with the government’s efforts to improve road safety and compensation for accident victims.
