PPA prohibits mandatory sale of passenger insurance coverage

July 9, 2010 9:41 pm 

MANILA, July 9 — State-run Philippine Ports Authority (PPA) has prohibited the mandatory sale of passenger insurance coverage on roll-on roll-off (RoRo) ports nationwide.

In a memorandum circular, the port authority directed to enforce necessary measures to stop the mandatory selling of passenger insurance policy prior to boarding of passengers.

The PPA's order came on the heels of a complaints by passengers that an insurance coverage is being sold by some insurance entities prior to boarding in PPA managed ports specifically in the RoRo ports.

Under the Domestic Shipping Development Act of 2004, all domestic shipowners or operators are required to submit adequate insurance coverage for each passengers in the amount of not less than P200,000 per manifested passenger.

In addition, the Maritime Industry Authority (Marina) last year issued an advisory informing public that the mandatory sale of additional passenger insurance policy to passengers prior to boarding is prohibited.

The PPA also directed all ports nationwide to put-up signboards in strategic areas of the ports and in readable format advising all concerned that buying of additional passenger insurance coverage is voluntary.

The Strong Republic Nautical Highway is one of the government's priority programs to bring down the cost of inter-island shipment of goods and people, and boost domestic tourism. Under the program, the government wants a ro-ro port system to link the country's islands.

Roro is a system designed to carry rolling stock cargo that does not require cranes for loading or unloading.

SNRH includes the three major highways—the Western Nautical Highway, Central Nautical Highway and Eastern Nautical Highway. (PNA)

RMA/DGA/ssc

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