Court affirms rules on passenger insurance
The Regional Trial Court (RTC) of Manila has upheld the validity of the revised Insurance Commission (IC) framework for mandatory Passenger Personal Accident Insurance (PPAI), dismissing a petition to block the accreditation of a third insurance pool.
In a statement on Monday, the IC said the Manila court had denied the petition filed by the Alliance of Concerned Transport Organizations (ACTO) in a decision dated May 20.
READ: IC doubles cap on vehicular accident insurance claims
PPAI provides insurance coverage to passengers of public utility vehicles in cases of injury, disability or death resulting from accidents.
The dispute stemmed from Circular Letter No. 2025-17 issued on Sept. 8, 2025, which revised the framework governing the PPAI program and set out updated accreditation requirements for insurance pools participating in the mandatory passenger accident insurance scheme.
“ACTO argued that IC acted with grave abuse of discretion and contended that the accreditation of more insurance pools undermined economies of scale and weakened existing risk-sharing arrangements,” the insurance regulator said.
The circular removed the previous limitation of two insurance pools under the PPAI program, paving the way for the accreditation of a third insurance pool.
Following the issuance of the circular, the IC accredited a third insurance pool managed by Centerstar Management and Insurance Agency Inc. and led by Milestone Guaranty and Assurance Corp.
Prior to this, two insurance pools had already been accredited under the 2020 to 2025 program: the SCCI Management and Insurance Agency Corp.-Pioneer Insurance & Surety Corp. pool and the Passenger Accident Management and Insurance Agency-Cocogen Insurance pool.
Both were subsequently granted accreditation under the 2025 to 2030 program.
“In its Decision, the RTC denied ACTO’s prayer for a writ of preliminary injunction and status quo ante order, finding that CL No. 2025-17 does not violate any law, rule, or regulation. The RTC also concluded that the IC and LTFRB (Land Transportation Franchising and Regulatory Board) did not act with grave abuse of discretion,” the IC said.
“The RTC likewise found no merit in ACTO’s allegations that its rights to due process and equal protection of the laws had been violated,” it added.
Under the revised framework, insurance companies participating in the PPAI program are required to do so exclusively through an accredited insurance pool. Each pool must consist of one lead insurance company and at least 12 member insurance companies.
The circular also allows any group of insurance companies seeking to participate in the program to apply for accreditation, subject to compliance with documentary and regulatory requirements prescribed by the commission. INQ
