GRAB ACCREDITATION TO EXPIRE JULY
To address issues against transport network companies, Grab Philippines signed up with an insurance company to insure its drivers and passengers.
To address one of the accountability concerns of the Land Transportation Franchising and Regulatory Board (LTRFRB) against transport network companies (TNCs), Grab Philippines said it signed up with an American insurance company to insure GrabCar passengers.
“Over a month ago, we signed up for insurance for the (GrabCar) passengers,” said Grab Philippines public affairs manager Leo Emmanuel K. Gonzales, in an interview with Cebu media yesterday.
Since September 2016, LTFRB has stopped the issuance of a franchise to Uber and Grab. LTFRB officials have also discouraged the public from riding GrabCar and Uber, saying commuters are not covered by a passenger insurance in times of accidents.
“We’re doing this for the welfare of the passenger,” Gonzales said, adding that GrabCar rides resulting in injury entitle the passenger to an insurance coverage of P20,000. In case of death, insurance coverage amounts to P200,000.
Under the law, all public utility vehicles (PUVs) must have sufficient insurance coverage to protect the riding public before a franchise can be issued to any operator. LTFRB has designated Passenger Accident Management and Insurance Agency, Inc. (PAMI) as the lead insurer.
For Grab Philippines, Gonzales said they signed up for an insurance coverage of their passengers with an American insurance company, which was not disclosed.
By July, Grab’s accreditation with LTFRB will expire.
The company official said they hope to have their two-year accreditation renewed before it expires.
“We fully support the government and we understand that the central office (LTFRB) is just doing its job,” said Gonzales, in light of the government’s refusal to issue provisional authority to majority of its GrabCar operators/drivers, as well as the existing moratorium for a franchise.
In Cebu alone, only 70 of the “hundreds” of GrabCar drivers have provisional authority, said Grab Cebu manager Raymond Dejan.
According to Gonzales, who is in close communication with LTFRB, the government regulator is still forming a legal framework for TNCs, particularly looking into the aspects of accountability of both drivers and passengers, pricing or fare, and technical definition of what transport network vehicle services (TNVS) are, and what cars are allowed to participate.
TNVS is the official term used by the LTFRB to describe vehicle owners who provide services via GrabCar and Uber applications.
In light of the regulatory conflict between LTFRB and TNCs, Gonzales said GrabCar drivers know the “risks” involved.
He said GrabCar continues to accept GrabCar applications, but the company discloses to the drivers that they can be apprehended anytime by the authorities for operating as “colorum.”
“Drivers know for a fact that there is an ongoing suspension,” said Gonzales, “and they take the risk.” Apprehended drivers operating without provincial authority can be fined as much as P120,000.
At least, GrabCar extends legal support to apprehended GrabCar drivers, added Gonzales.
“A lot of them are family men,and paying for amortization. A lot of them look at this as an opportunity (to earn),” he said, giving one reason the company cannot mandate its pool of GrabCar operators to stop driving and accepting passengers. He added that there is no employer-employee relationship between GrabCar and the operators/drivers.
Despite the hurdles, Grab will continue to invest in the Philippines.
Gonzales said the company, whose headquarters is in Singapore, has already invested billions in the country. In 2016, he said, Grab Philippines paid P160 million in taxes.
In Southeast Asia, commuters consider GrabCar and Uber as an alternative and convenient mode of transportation. Riders can book an Uber or GrabCar any time of the day or night to bring them around the country’s key cities.
For vehicle owners and operators, GrabCar and Uber have become an extra source of income.