PPA warns against passenger insurance scam

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Image by Pete Linforth from Pixabay
  • The Philippine Ports Authority warned the public against individuals who charge for passenger insurance
  • PPA says the fee is illegal, with passengers already covered by the vessel insurance
  • Under the implementing rules of Republic Act No. 9295, vessel owners are mandated to provide insurance coverage with an aggregate limit of liability of P200,000 per passenger

The Philippine Ports Authority (PPA) warned the public against a passenger insurance scam.

PPA in a statement said it issued the warning after receiving reports from travellers of the unauthorized activity.

PPA said it has issued a memo directing all port managers to ensure implementation of PPA Memorandum Circular No. 06-2010, which prohibits the mandatory sale of passenger insurance coverage. Under the MC, PPA said no additional payment for insurance should be collected from passengers as they are already covered by vessel insurance.

PPA noted that under PPA MC No. 17-2003 (Applicable Ro-Ro Tariff Rates for the Strong Republic Nautical Highway) issued in July 2003, only the terminal fee should be collected from the passenger.

Moreover, under the implementing rules and regulations of Republic Act No. 9295, or the Domestic Shipping Development Act of 2004, vessel owners are mandated to provide insurance coverage with an aggregate limit of liability in the amount of P200,000 per passenger.

PPA general manager Jay Daniel Santiago said any PPA personnel found to have been involved in the unauthorized collection of fees, including passenger insurance, will face administrative cases.

“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 as we are after the welfare and comfort of our passengers,” Santiago said.

Santiago encourages passengers to report instances of additional fees being collected other the terminal fee inside the terminal. PPA said its social media accounts and complaint center are open to receive these complaints.