How to insure your Uber or GrabCar vehicle

 

Now that both Uber and Grab have been accredited by the Land Transportation Franchising Regulatory Board (LTFRB), more Filipinos are using the services of these transport network companies (TNCs) any time of the day or night to their destination in Metro Manila.

Uber and Grab provide extra income for vehicle owners and operators.

For those who want to register with Uber or Grab, MoneyMax.ph, the leading comparison portal for car insurance, provides a step-by-step procedure for registration.

How to be an Uber partner, Grab peer

Aside from registering on the Uber and Grab platforms, operators are required by the LTFRB to register their vehicles under the category Transportation Vehicle Network Service or TVNS. Registering gives them a Certificate of Public Convenience (CPC) which will allow them to operate around Metro Manila. Operators without a CPC may be apprehended.

 

What is PAMI insurance?

Once operators have submitted their requirements for TVNS registration, they are required to apply for PAMI insurance on top of their current insurance. Insurance providers may not entitle you to an insurance payout in the event of an accident or claim if they find out the vehicle is registered under the TVNS category.

For TVNS-categorized vehicles, PAMI insurance is required to provide increased coverage for both driver and passengers and of course the vehicle. PAMI, which stands for Passenger Accident Management and Insurance Agency Inc., is passenger insurance for public utility vehicles (PUVs).

Applying for PAMI insurance

Uber and Grab will process the PAMI insurance application after submitting the TVNS documents. For processing both TVNS registration and PAMI insurance, the following are required:

• Official receipt (OR) of your car

• Car registration (CR) document

• Valid government I.D.

• Photographs of car(s)

After completing the TVNS registration and PAMI insurance application, operators and partners are now ready to get on the road and start booking passengers.

Claiming PAMI insurance

Making a PAMI insurance claim is the same as the process for CTPL or comprehensive car insurance. In the event of a claim, present the following documents:

• Policy copy and OR of premium payment

• Police report affidavit

• Insurance claim form

• Before-and-after photographs of vehicles involved

• Repair estimate

Once all the documents are in, there is a few weeks of waiting before receiving the Letter of Attorney (LoA) authorizing the repair of the vehicle. During those weeks, inspections will take place authenticating the reports filed during the claims process.

 

Why do you need insurance?

Both comprehensive car and PAMI insurance provide a number of benefits. Three of the most common advantages of having insurance are:

1. Less expenses

At a glance, insurance premiums sure look like a large sum. They may tak up up a chunk of  your month's salary . A careful and defensive driver may be hesitant to get insurance, especially if he’s never been in an accident, either minor or major. However, it’s better to be safe than sorry.

In the event of an accident, the insurance premiums will cost much less than the repairs. A minor repair like a bumper replacement may start at P20,000, while major repairs may cost hundreds of thousands – definitely much more than the cost of insurance.

2. Quicker claims system

The emotional trauma of a vehicular accident, the money to shell out for repairs, the filing of police reports and the drama are only some of the experiences one undergoes in the unfortunate event of an accident. With car insurance, there’s already a proven system in place and the insurer will assist you during the claims process. File the report, submit the supporting documents, and then wait until you receive the LoA authorizing the repairs – those steps are definitely less stressful than handling everything alone.

3. Increased coverage

Since Uber and Grab vehicles are categorized as TVNS, increased insurance coverage is needed to protect both the driver and all passengers. With PAMI insurance, premium payments increase in value, but the major benefit is higher coverage. In the event of a claim, the claimant is entitled to a higher payment because of the wider coverage of PAMI insurance.

Final thoughts

For partners and operators, there’s no denying the benefits of TNCs such as Uber and Grab. They provide additional income streams and more employment opportunities for Filipinos. They do this in such a way that they provide safe and convenient means of transportation for their passengers. PAMI insurance provides another level of protection alongside one’s current insurance policy. To compare the best car insurance rates and coverage, head on to the MoneyMax.ph comparison platform.