LTFRB: Uber lied to senators on rider insurance

The transport network company Uber again finds itself under scrutiny by government regulators, who earlier accused it of violating the year-old moratorium on the acceptance of new drivers.

Transport network company (TNC) Uber lied to the senators when it said that its passengers were covered “100 percent” by accident insurance, according to the Land Transportation Franchising and Regulatory Board (LTFRB).

It is also “not true” that Uber’s insurer is the Passenger Accident Management and Insurance Agency Inc. (Pami) as the firm told the LTFRB that “they no longer insured Uber after August [last year].”

“The LTFRB notes that the statement given by Yves Gonzalez (Uber Philippines’ public policy head) during the Senate hearing is not true. For us, Uber lied,” board member Aileen Lizada said on Friday.

‘Limited coverage’

Lizada said Uber’s insurer was actually UCPB General Auto Passenger Accident Insurance, which offered the transport network company a package that has “very limited coverage” for passengers.

The Senate committee on public services is trying to determine legislative solutions to address issues in the ride-sharing industry and the complaints of taxi operators over the lack of clear-cut regulation governing Uber and Grab, another TNC.

The LTFRB, through Memorandum Circular No. 2015-028, set forth the guidelines for a three-year enhanced personal passenger accident insurance program that entitles the family of passengers killed in an accident P200,000.

Schedule of payment

A schedule of payment ranging from P5,000 to P100,000 was also set for various types of injuries and disability. Passengers are also assured of legal assistance of P15,000.

Uber’s insurance package also hands out P200,000 in case of death, but its schedule of payment for injuries—although with payouts higher than those required by the memorandum circular—is limited, according to the LTFRB.

Uber passengers injured in accidents are entitled to the maximum coverage of P200,000 if they suffer “total and irrevocable loss of all sight in both eyes; total loss by physical severance at or above the wrist or ankle of one hand or one foot together with the total and irrevocable loss of all sight in one eye; and total loss by physical severance at or above the wrist or ankle of both hands or both feet or one hand together with one foot.”

Uber responds

A passenger is covered up to P100,000 for injuries such as “total and irrevocable loss of all sight in one eye, and total loss by physical severance at or above the wrist or ankle of one hand or one foot.”

But Cat Avelino, Uber head of communications, denied that the TNC “lied” about the insurance coverage of its passengers during the hearing.

“As we stated on the Senate hearing [on Thursday], all Uber trips are insured by Pami for P200,000,” she said.

For its part, Grab said its insurer, Great American Insurance, covers “all its TNVS (transport network vehicle service) partners and passengers” since April.

Grab passengers’ accident insurance covers accidental death, permanent dismemberment and bodily injuries.

In the event of death or permanent disability, victims can claim up to P200,000 while up to P20,000 is allocated for medical disbursements.