Car insurance in the Philippines
Do you want to register yourself as a Grab Partner or with any other ride-hailing service providers? Then, as per the Land Transportation Franchising and Regulatory Board (LTFRB), you first need to register your vehicle under the Transportation Network Vehicle Service (TNVS) category. This will get you a Certificate of Public Convenience (CPC) that authorises you to operate around key cities nationwide, including Metro Manila. But what about insurance? For Grab and other providers who are on the road daily, for long hours, the stakes are real. They are exposed to the risk of accidents and are responsible for the passenger or parcel, which makes insurance not just smart but essential. It will cover your finances, vehicle, and passengers in case of an accident or other unfortunate event.TNVS insurance - An introduction
Did you know there’s something called TNVS insurance? Well, if you are with Grab or other providers, this is the thing you can’t afford to skip. TNVS insurance is a specialised policy for all the vehicles registered under the TNVS category and operating under ride-hailing platforms. In case you think that your car has comprehensive coverage and TNVS coverage is not necessary, then we’d like to burst your bubble. Comprehensive car insurance is limited to only private cars, and drivers earning via ride-hailing services need TNVS insurance. This is because such cars have a different risk profile, i.e., more time on the road and higher exposure to potential accidents.TNVS insurance - Major components
In the Philippines, TNVS insurance typically includes the following coverage options - No-fault indemnity insurance - This clause assures that the insurance provider pays for all the incurred damages regardless of who’s at fault. All-risk coverage - This one protects a wide range of potential losses arising from extreme conditions. Together, they ensure that both the driver and passengers are covered, thus offering peace of mind to the driver during operations.
Photo from GrabReasons why car insurance is essential for Grab and ride-hailing services
Here’s why Grab and another ride-hailing service provider should never skip car insurance - Legal requirements in the Philippines: The Land Transportation Office (LTO) and Land Transportation Franchising and Regulatory Board (LTFRB) mandate that every vehicle have at least Compulsory Third Party Liability (CTPL) insurance. Further, when it comes to TNVS (Transport Network Vehicle Service) like Grab, comprehensive insurance and personal accident insurance (for passengers) are required by the LTFRB. It’s part of the whole TNVA accreditation process. Acts as a shield against challenges on the road: Drivers of ride-hailing vehicles and other ride-hailing service providers face the challenges of the road on an everyday basis. This includes tackling heavy traffic, distracted drivers, and unpredictable weather conditions. Furthermore, their long hours of work cause fatigue, which increases the risk of accidents. All this makes car insurance essential for such drivers. Passenger coverage: Standard comprehensive insurance may not cover passengers in a commercial vehicle. TNVS insurance fills the gap by ensuring complete passenger protection.TNVS insurance providers in the Philippines
The LTFRB has recognised two primary TNVS insurance providers in the country, namely the Passenger Accident Management and Insurance Agency (PAMI) and the SCCI Management and Insurance Agency Corporation (SCCI). Coverage? Under LTFRB Memorandum Circular 2015-028, passengers of Public Utility Vehicles (PUVs) are entitled to monetary benefits ranging from PHP 2,000 to PHP 400,000, covering accidental benefits and injuries.TNVS insurance application process - Step by step guide
If you want to obtain TNVS insurance, here’s what you need to do -- Start by visiting the LTFRB office. It is located on the 2nd Floor of the Prima Building, East Avenue.
- Apply at the LTFRB office and claim a copy of your documents
- Bring these documents to the Grab TNVS Help Centre for case number registration
- Time to proceed to the PAMI or SCCI office
- At the designated counter, present the receiving copy of your application
- Depending on the type of vehicle you use for TNVS operations, pay the following fees - PHP 2,639 for Sedan/Hatchback and PHP 3,139 for AUV/Wagon
- Upon submission of the fees, you’ll receive TNVS insurance on the spot
Grab insurance
The first TNVS insurance of its kind, Grab insurance protects both the driver and passengers of the Grab car.- Coverage? It offers protection against injuries and/or death resulting from accidents involving Grab cars. The policy covers the entire trip, starting from the time the driver confirms the booking and lasting till the passenger reaches the drop-off point. Further, Grab insurance follows a no-fault policy, meaning the passenger will get full personal accident insurance benefits regardless of who’s at fault.
- Providers? There are two third-party insurance providers that are currently serving as Grab insurance providers - BPI AIA and Chubb Philippines.
- Beneficiaries? Grab cars, including those without CPC (Certificate of Public Convenience), are automatically enrolled in Grab insurance. There is no need to pay a premium or deductible.
- Claim process? It begins after you seek medical treatment at the nearest hospital. The process involves reporting the incident to the police and Grab customer service, collecting all the required documents, including all the bills, medical reports, police report, proof of booking, etc., submitting documents for verification, and waiting for compensation.
Photo from FreepikPAMI insurance
PAMI stands for Passenger Accident Management and Insurance Agency, Inc., a LTFRB partner that offers government-mandated personal accident insurance coverage for passengers in public utility vehicles, including Grab. Let us have an overview of PAMI insurance coverage, cost, requirements, and more -- Cost: For sedan and hatch, the premium is PHP 2,639, and for AUV and wagon, it is PHP 3,139
- Coverage: The list of PAMI insurance benefits is pretty long, including accidental death, permanent total disability, loss of two or more limbs, total and irrevocable loss of sight in both eyes, loss of hearing/toes/leg/hand/fingers/metacarpals, casket, burial assistance, legal assistance services, ambulance assistance, and more.
- Requirements: To secure passenger personal accident insurance from PAMI, you’ll need to submit the following: latest LTFRB decision, existing COC (certificate of cover), and vehicle certificate of registration and original receipt (CR and OR). PAMI also offers CTPL insurance, for which you’ll need the following documents: Vehicle Official Receipt (OR) & Certificate of Registration (CR), and Certificate of Insurance (for existing clients).
What’s the application process?
Let’s start with the offline process first -- Start by filing a TNVS application at the LTFRB office. Here, don’t forget to claim the receiving copy of your documents.
- Time to head to the Grab TNVS Help Centre at Unit 104-A & B, Unit 404 Prima Building, No. 16 East Avenue, corner Magalang St, Quezon City, for case number registration.
- Next, head to the PAMI office (located in the same building as the Grab TNVS Help Centre) and present the receiving copy of the TNVS application.
- Pay the required fees, PHP 2,639 and PHP 3,139 for sedans and AUV/wagons, respectively.
- Get ready to receive your PAMI policy hand-to-hand.
- Send an email to the PAMI branch with the following documents: Vehicle OR & CR, COC, and latest LTFRB.
- Check the inbox for an email with a code and gross premium amount.
- Make the required payment to the bank account mentioned in the email.
- Time to email a scanned copy of the payment receipt to PAMI.
- After payment verification by PAMI, you’ll get a photo/scanned copy of the passenger insurance policy and the authentication code at the LTFRB office.
