Section 377
SEC. 377. Ever land transportation operator and every owner of a motor vehicle shall, before applying for the registration or renewal of registration of any motor vehicle, secure an insurance policy issued by any insurance company authorized by the Commissioner. In the case of a land transportation operator, the insurance shall cover liability for death of, or bodily injuries to, passengers arising out of the use of such vehicle in the amount of not less than twelve thousand pesos per passenger and an amount, in any one accident of not less than that set forth in the following scale — Motor vehicles with an authorized capacity of twenty-six or more passengers: Fifty thousand pesos; Motor vehicles with an authorized capacity of from twelve to twenty-five passengers: Forty thousand pesos; Motor vehicles with an authorized capacity of from six to eleven passengers: Thirty thousand pesos; Motor vehicles with an authorized capacity of five or less passengers: Five thousand pesos multiplied by the authorized capacity. Provided, however, That a transportation operator may be exempted from the compulsory requirement of this section to secure passenger insurance upon his posting with the Commissioner a cash deposit or a surety bond in the amounts herein required as limits of indemnity to answer for passenger and/or third-party accident claims. Such cash deposit or surety bond may be resorted to by the Commissioner in cases of accidents which are not promptly settled by the transportation operator, but in that event the said deposit or bond shall be replenished by such transportation operator within sixty days after impairment, otherwise, he shall become subject to the compulsory provisions of this section. The aforesaid cash deposit may be invested by the Commissioner in readily marketable government bonds and/or securities. In the case of an owner of a motor vehicle, including' those used for transportation of passengers for compensation, the insurance shall cover liability for death or injury to third-parties and for loss or damage to property of said third parties in an amount not less than that set forth in the following scale — Tricycles, motorcycles and scooters: Twelve thousand pesos any one accident; Vehicles with an unladen weight of 2,600 kilos or less: Twenty thousand pesos any one accident; Vehicles with an unladen weight of between 2,601 kilos and 3,930 kilos: Thirty thousand pesos any one accident; Vehicles with an unladen weight over 3,930i kilos: Fifty thousand pesos any one accident. Provided, That for purpose of this section, in the event of liability both for death/bodily injury and property damage, the claims for death/bodily injury shall have prior claim for satisfaction on the amount of the policy; Provided, further, That such a policy shall not be-required to cover liability in respect of the death or bodily injury of a person arising out of and in the course of his employment by a land transportation operator or owner of a motor vehicle insured by the policy.