Manila court rejects transport group’s insurance challenge

The ruling allows a third insurance pool to keep operating under the passenger cover programme.

A Manila court has upheld the Insurance Commission’s revised passenger personal accident insurance (PPAI) framework, clearing the way for the continued operation of a third accredited insurance pool in the programme.

In a decision dated 20 May 2026, Manila Regional Trial Court Branch 180 dismissed a petition filed by the Alliance of Concerned Transport Organisations (ACTO), which sought to overturn the revised framework and block the accreditation of an additional insurance pool, according to the Insurance Commission (IC).

The case started from Circular Letter No. 2025-17, issued by the IC in September 2025, which updated the PPAI framework and opened accreditation to qualified insurance pools. 

The move allowed more participants to join a programme that provides passenger personal accident cover for public transport users.

Under the previous 2020 to 2025 programme, two insurance pools had been accredited. Both retained their accreditation under the 2025 to 2030 programme. In December 2025, the IC approved a third insurance pool managed by Centerstar Management and Insurance Agency Inc. and led by Milestone Guaranty and Assurance Corp.

ACTO challenged the decision, arguing that adding more insurance pools would undermine economies of scale and weaken existing risk-sharing arrangements. 

The group also alleged that the IC had acted with grave abuse of discretion and violated its rights to due process and equal protection.

However, the court sided with the regulator. The IC said the RTC found that Circular Letter No. 2025-17 did not violate any law, rule or regulation and denied ACTO’s request for a writ of preliminary injunction and a status quo ante order.

The court also rejected ACTO’s claims that its constitutional rights had been breached, according to the IC.

The ruling reinforces the regulator’s efforts to broaden participation in the PPAI programme and supports the accreditation framework that took effect for the 2025 to 2030 cycle.