By Patrizia Paola C. Marcelo

THE LAND Transportation Franchising and Regulatory Board (LTFRB) yesterday clarified that the accreditation papers of ride-sharing apps Grab and Uber were “lost” by the previous and not the current administration of the agency.

This comes after Board Member Aileen Lizada said in an interview with radio station DZMM on Friday that the agency was unable to track down the accreditation papers of Grab and Uber. She later confirmed this in a text message to BusinessWorld, saying “the case folders were no longer there” when she assumed office.

A statement on Sunday by the LTFRB said in part: “It is not true that the LTFRB lost the ‘application documents’ of TNVS (transport network vehicle service). The documents mentioned by Board Member Aileen Lizada were the ‘accreditation papers of TNCs (transport network companies)’ that were lost by the previous administration of LTFRB, NOT by the current (one).

“There was no proper turnover of documents, including the accreditation papers of the TNCs. The current administration of LTFRB, in fact, diligently exerted all efforts to locate the missing documents ever since they assumed office. Uber and Grab also have copies of such documents that LTFRB can request,…in case there is a necessity,” the statement also said.

The LTFRB added, “The TNC accreditation documents do not have anything to do with the imposition of cap in the application of TNVS franchise which ballooned to more than 30,000 applications covering more than 32,000 units, which was more than enough to address the demand at that time.”

The LTFRB added that the moratorium on accepting new applications for TNVS franchise, which was issued by LTFRB last July 2016, was due to their “review of the fundamental issues of accountability of TNCs to passengers and operators alike, and the problem of fare surging scheme,” as well the issues of the contribution of TNCs of taxes to the government, and “having required garages to avoid illegal parking on streets to prevent traffic congestion.”

In another development, Grab and Uber said they have provided insurance for their passengers, following a statement by the Insurance Commission (IC) reminding the two TNCs to provide insurance for passengers in compliance with the mandatory insurance coverage under the Passenger Personal Accident Insurance Program (PPAIP).

In the statement, IC Commissioner Dennis B. Funa said: “Based on the data submitted by the Passenger Accident Management and Insurance Agency (PAMI), there were only 21,353 certificates of insurance coverage it issued for vehicles operating under Uber while only 6,719 certificates of insurance coverage was issued for vehicles operating under Grab. SSCI (Management and Insurance Agency Corp.),on the other hand, reported that it has issued more or less 15 Passenger Personal Accident Insurance policies (PPAIP) under Uber and Grab.”

Mr. Funa added, “If based on the earlier reports that there are a total of 50,000 Uber and Grab active drivers and assuming that each driver corresponds to one vehicle, only 56.18% of the total Uber and Grab vehicles plying on the roads are covered by the mandatory passenger insurance.”

Based on the data from the IC, a total of 392,299 vehicles were insured under the PPAIP in 2016.

In its statement, Grab said: “Before it was even mandated, Grab (had) taken the initiative and (gone) the extra mile in ensuring the safety of both our partner drivers and passengers by providing them with industry-standard insurance coverage at no cost to drivers. We also continuously review driver performance and quickly respond to complaints by suspending drivers, real time, pending further investigation. No other transport mode has this capability to provide assurances of safety to the public.”

Grab also said that their passengers are insured, even for their transport network vehicles (TNVs) without certificate of public convenience (CPC) or provisional authority (PA).

In a text message, Uber responded to the IC’s statement, saying: “All trips on Uber have always been insured.”

IC data showed that in terms of the types of vehicles insured in 2016, the jeepney segment had the highest share with a total of 176,213 units, a decrease of 2% from the 179,815 insured jeepneys in 2015, while the sedan segment increased by 64.94% from 55,129 insured vehicles in 2015 to 90,930 vehicles in 2016, with the entry of the TNCs such as Grab and Uber.

Under the PPAIP, public utility vehicles (PUVs) are required to procure insurance coverage for their passengers, including the driver and the conductor, which provides for accidental death benefits and bodily injury benefits.

For the current PPAIP, the LTFRB entered into a three-year Memorandum of Agreement (MoA) with two insurance consortia managed by two companies, SCCI and PAMI. SSCI’s lead insurer is Allied Bank’s Insurance Corp., while PAMI’s lead insurer is United Coconut Planters Bank (UCPB) Insurance Corporation.

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

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