Passenger accident insurance claims increase 28% in 2016

MANILA, Philippines - The insurance industry paid more insurance benefits under the Passenger Personal Accident Insurance (PPAI) program in 2016 due to the expanded coverage of the program during the period, the Insurance Commission (IC) reported.

Insurance Commissioner Dennis Funa said the total benefits paid under the PPAI program in 2016 rose 28 percent to P63 million from the P49 million recorded in the previous year, based on data combined from the SCCI Management and Insurance Agency Corp. and the Passenger Accident Management and Insurance Agency Inc.

Under the PPAI program, public utility vehicles are required to procure insurance coverage for their passengers, including the driver.

Funa said the increase in insurance claims can be attributed to the increase in death benefits from P150,000 to P200,000 under the 2015 to 2018 Enhanced PPAI Program.

“This can also be attributed to the continued rise in the number of incidents which give rise to insurance claims,” he added.

In 2016, Funa said a total of 1,044 accidents involving vehicles covered by PPAI were reported, up 11 percent from the 941 recorded in 2015.

He said majority of these incidents involve jeepneys, as well as buses.

The commissioner said there was also an increase in the number of public utility vehicles insured under the PPAI program last year.

By segment, the commissioner said jeepneys had the highest share of units insured at 176,213 in 2016. This was followed by the sedan segment with 90,930 units; truck segment with 66,756; Asian utility vehicle, 32,462; and the bus segment with 25,938 units insured.

Under the current PPAI Program, the maximum medical treatment benefits for victims of road accident is set at P20,000 if the claims are substantiated by receipts.