Philippines orders higher insurance for private vehicle riders

The PPAI provides up to $7.2k (₱400,000) in death benefits.

The Philippines ordered transportation officials to raise private vehicle insurance benefits to match those provided to public utility vehicle (PUV) passengers, aiming to improve compensation for victims of road accidents.

Transportation Secretary Vince Dizon confirmed the directive in a media interview on Thursday, saying 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.

The disparity has come under public scrutiny following recent fatal road accidents.

Dizon said 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.

The insurance gap was brought to light after the December 2024 Katipunan Flyover crash, which killed four and injured over 20.

Families received only $3,597.83 in total insurance payouts, split amongst all victims.

A similar compensation shortfall was reported following a deadly pile-up on the Subic–Clark–Tarlac Expressway (SCTEX) that killed 10 people.

($1.00 = PhP55.59)