PPA probes additional insurance before boarding vessels




The Manila Times


Maritime And Logistics

THE Philippine Ports Authority (PPA) warned against unauthorized charging of insurance inside the port that burdens the passengers. PPA General Manager Jay Santiago said administrative cases will be filed against those found to be involved in the unauthorized charging of fees, including the mandatory passenger insurance. “Heads will roll once proven guilty of unauthorized collection of fees inside the port, including this mandatory passenger insurance. The PPA management is taking this matter very seriously for the welfare and comfort of our passengers,” Santiago said. The agency issued a memorandum to all Port Managers to ensure the implementation of PPA Memorandum Circular (MC) 06-2010 or the “Prohibition on the mandatory sale of passenger insurance coverage.” PPA received a complaint from several passengers that some opportunists were asking for additional fees for insurance coverage before they will be allowed to board the ship. The MC stated that no added insurance fees will be charged because passengers are already covered by the insurance of the ship, in case of any untoward incidents. Under Executive Order 170, the government has reduced the fees for “inter-island transportation,” which was supported by PPA MC 17-2003 issued on July 16, 2003. Republic Act 9295 or the “Domestic Shipping Development Act of 2004,” mandates ship owners to have proper insurance for passengers, with a minimum amount of P200,000 to protect them, in case of an accident. “According to the law, there’s no need for additional insurance charges for passengers. We urge the public to report to us any incident of unauthorized collection of fees, except passenger terminal fee,” Santiago said. PPA encourages passengers to check out PPA’s social media accounts for information or its complaint center to report unauthorized insurance fee collection.