LTFRB: Uber lied on passenger insurance

MANILA, Philippines - Ridesharing firm Uber lied about its limited insurance coverage for its passengers, the Land Transportation Franchising and Regulatory Board (LTFRB) said yesterday.

LTFRB spokesperson Aileen Lizada said “it is not true” that passengers are covered 100 percent by insurance, as claimed by the transport network company (TNCs) during a Senate hearing. 

Yves Gonzales, Uber’s government relations and public policy head, claimed that all trips booked through its app has the government-mandated insurance under the Passenger Accident Management and Insurance Agency Inc. (PAMI), even for colorum units. 

Lizada belied this statement, adding that Uber’s insurance coverage for its riders is very limited and not under PAMI but UCPB General Insurance Co. Inc. 

Uber’s insurance package is limited to only seven provisions, which include accidental death, loss of some limbs and sight, as well as medical reimbursement, she said. 

In contrast, the LTFRB mandates under Memorandum Circular 2015-028 an enhanced passenger personal accident insurance program schedule, which provides even for the loss of a single finger during a vehicular accident. 

“The LTFRB notes that the statement given by Yves Gonzales during the Senate hearing is not true. For us, Uber lied,” Lizada said. 

Uber also does not have a “no fault indemnity” clause, which means injured or killed passengers are not covered in accidents that may be the fault or caused by negligence of the driver, she said. 

“This is what we are after, the safety of the riding public. We hope people understand this,” Lizada added.

Grab is also not off the hook as data from the Insurance Commission showed that only 6,719 units have insurance coverage under PAMI. 

Grab argued that the units covered under PAMI are the ones that have valid provisional authority to operate or franchises while the rest are covered by private insurance. 

Leo Gonzales, Grab public affairs head, said all of their rides are covered under the package they have with the Great American Insurance Group arranged by the company’s regional headquarters. 

In danger

Uncertainties on insurance could imperil the renewal of accreditation of both TNCs, which are currently under review by the Board. 

Grab’s accreditation expired in July while Uber’s will expire this month. 

Earlier this week, the LTFRB showed proof that they were able to “activate” vehicles on Uber’s platform despite orders by the board. 

The LTFRB also said only about 3,000 drivers are authorized to operate out of the more than 42,000 vehicles on the road for both TNCs. 

“Just to make it clear, we have a problem with companies like Uber not because they are heralds of cutting-edge technology but they are law breakers,” Lizada said in a message to reporters. 

LTFRB chairman Martin Delgra also took a swipe at Uber’s statement during the hearing that the board should think 21st century. 

“Think 21st century does not mean engaging in misrepresentation or not being transparent and fair in your dealings,” Lizada quoted Delgra as saying.