July 18, 2018, 11:23 pm
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Accident insurance claims rise 28% in ’16

The insurance industry paid a total of P63 million in  claims under the Passenger Personal Accident Insurance (PPAI) Program for the year 2016, a report to the Insurance Commission said.

“For calendar year 2016, the total benefits paid under the mandatory insurance program amounted to P63 million, an increase of 28 percent compared to the P49 million benefits paid in 2015,” said Dennis Funa, insurance commissioner.

“This is based on the report submitted by the two accredited management companies under the current PPAI Program- SCCI Management and Insurance Agency Corporation (SCCI) and Passenger Accident Management and Insurance Agency, Inc. (PAMI),” he added.

Funa said  P46.25 million or 73 percent of the P63 million claims paid under the PPAI Program were paid as death benefits. 

“For the last three years, the death benefits paid continued to rise with an average increase of 29.63 percent from 2014 to 2016, while P16.44 million and P320 thousand were paid as medical and disability benefits, respectively,” Funa said.

The increase in the amount of benefits paid can be attributed to the increase in the death benefits from P150,000 to P200,000 under the 2015-2018 Enhanced PPAI Program. 

This can also be attributed to the continued rise in the number of incidents which gave rise to an insurance claim.

Funa  said there was also an increase in the number of public utility vehicles insured under the PPAI Program.

“For the year 2016, a total of 392,299 public utility vehicles were insured under the PPAI Program compared to the 351,157 units and 355,691 units insured in 2014 and 2015, respectively. In terms of type of units insured, the jeepney segment has the highest share with a total of 176,213 units insured,” Funa said. 

In terms of number of units insured, the jeepney segment is followed by the sedan segment with 90,930 units insured; truck segment with 66,756 units insured; AUV segment with 32,462 units insured; and the bus segment with 25,938 units insured. 

In terms of reported incidents and claims filed, Funa said there was a total of 1,044 incidents reported which equated to a total of 2,474 claims filed before the two management companies. 

“As to the number of reported incidents involving public utility vehicles, there was an increase of 11 percent from the 941 reported incidents in 2015 to 1,044 incidents reported in 2016 and a majority of which involved jeepney accidents,” Funa said.

“However, there was a 43 percent increase in reported incidents involving the bus segment from 247 incidents in 2015 to 354 incidents in 2016,” he added. 

The total of 1,044 incidents equated to 2,474 insurance claims for death, medical and disability benefits, 88 percent of which were claims for medical benefits. 

Under the Insurance Code, public utility vehicles are required to procure insurance coverage for their passengers, including the driver, which provides for accidental death benefits and bodily injury benefits. 

Under the Enhanced PPAIP, the maximum amount of death benefit is in the amount of P200,000 per passenger (from the previous P150,000 per passenger) while the amount of benefits for bodily injuries are based on a schedule of benefits provided under the policy depending on the injury sustained.
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