On June 22, 1999, the Board passed Memorandum Circular No. 99-011 requiring all public utility vehicle operators to secure a passenger accident insurance. In compliance with said circular and in line with the Board's thrust to standardize and simplify the documentary requirements for applications/petitions for the issuance of a new certificate of public convenience, extension of validity, sale and transfer, to register in lieu, substitution, and increase in units, instead of requiring bank books, titles to property and other documents to prove financial capacity, the Board shall merely require the presentation of a passenger accident insurance as mandated by the above mentioned circular before issuing any decision. This policy, however, shall only apply to applications/petitions involving not more than TWO (2) units. In cases where more than two units are involved, the Board, in addition to the submission of a passenger accident insurance as mandated by Memorandum Circular No. 99-011, may still require submission of additional documents to establish financial capacity as the need arises.

Any fraud, falsification or misrepresentation of any kind and form in the passenger accident insurance submitted as proof of financial capacity or in the filing of insurance claims shall subject the public utility operator found guilty of such offense to a penalty of cancellation of the certificates of public convenience and/or the outright denial of the application.

This Memorandum Circular shall take effect fifteen (15) days after the filing of three (3) copies hereof with the UP. Law Center, in accordance with Presidential Circular No. 11 dated October 9, 1992.

Adopted: 25 Nov. 1999

(SGD.) DANTE M. LANTIN
Chairman

(SGD.) VIGOR D. MENDOZA II
Board Member

(SGD.) REMEDIOS G. BELLEZA
Board Member