Insurance Requirements and Coverage

1. Required Insurance Coverage

a. Personal Motor Vehicle Insurance

• Mandatory Third-Party Liability (TPL) Coverage: This is a legal requirement for all motor vehicles in the Philippines. It covers bodily injury and property damage to third parties in the event of an accident.

• Comprehensive Coverage (Optional): While not mandatory, comprehensive insurance is recommended for ride-hailing drivers. It provides protection against theft, vandalism, and damage to the vehicle not caused by a collision.

b. Ride-Hailing Insurance

• Coverage for Ride-Hailing Services: Drivers for ride-hailing companies are typically required to have insurance that covers them specifically while operating as a commercial vehicle. Some insurance providers offer policies tailored for ride-hailing drivers.

• Increased Liability Limits: Due to the commercial nature of ride-hailing, higher liability limits may be mandated to ensure adequate protection for passengers.

2. Insurance Requirements Under the Land Transportation Franchising and Regulatory Board (LTFRB)

• Passenger Insurance Coverage: The LTFRB mandates that all ride-hailing operators provide insurance coverage for passengers. This typically includes coverage for bodily injury, death, and property damage.

• Insurance Certificate: Ride-hailing operators are required to secure a Certificate of Insurance that meets the LTFRB’s standards, indicating that they have adequate insurance coverage for their drivers and passengers.

3. Periods of Coverage for Ride-Hailing

In the context of ride-hailing, insurance coverage is usually divided into periods based on the status of the ride:

• Period 1 (App On but No Passenger): Limited coverage is provided by the ride-hailing platform; usually, the driver’s personal insurance applies.

• Period 2 (Passenger Request Accepted): Enhanced liability coverage is activated once a driver accepts a passenger request.

• Period 3 (Passenger Onboard): Full liability coverage is in effect during the ride.

4. Recommended Insurance Providers

Several insurance companies in the Philippines offer specialized ride-hailing insurance products. Some of these include:

• Malayan Insurance

• Mapfre Insular Insurance

• FPG Insurance

• PNB General Insurance

• Allianz PNB Life

It is advisable for drivers to shop around for the best coverage options and premiums that suit their needs.

5. Compliance with Local Regulations

• License and Permit Requirements: Drivers must ensure they comply with all licensing and regulatory requirements set by the LTFRB, including having a valid Certificate of Public Convenience (CPC) for operating as a ride-hailing service.

• Documentation: Drivers should maintain proper documentation of their insurance and be prepared to present it during inspections or in case of accidents.

6. Claim Process

• Accident Reporting: In the event of an accident, drivers must report it to both their insurance provider and the ride-hailing platform as soon as possible.

• Documentation: Collect evidence, such as photos of the accident scene, police reports, and witness statements, to support the insurance claim.

7. Costs of Insurance

• Premium Variability: The cost of insurance for ride-hailing drivers can vary based on factors such as driving history, vehicle type, and coverage limits. Generally, premiums for ride-hailing insurance may be higher than standard personal auto insurance due to increased risk.

8. Additional Considerations

• Inform Your Insurance Provider: It's crucial to inform your insurance provider that you will be using your vehicle for ride-hailing services. Failure to do so may result in denied claims.

• Review Coverage Regularly: Drivers should periodically review their insurance policies to ensure they still meet their needs and comply with any changes in local regulations.