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Muntinlupa mulls liability insurance

Nov 9, 2007 | Julie M. Aurelio | Inquirer News

Businesses in Muntinlupa City may soon have to get public liability insurance before they are issued a license to operate.

Mayor Aldrin San Pedro said this type of insurance would protect consumers and businesses alike if major accidents happen within the premises of commercial establishments.

The proposal was made in the aftermath of the Oct. 19 explosion at Glorietta 2 in Makati City that killed 11 people and injured a hundred more.

A police investigation has so far suggested that a gas explosion in the basement, not a bomb, could have caused the noontime blast.

Win-win situation

"Having public liability insurance is a win-win solution to protect companies and customers. The Glorietta 2 explosion is a clear example of why companies should get the insurance," San Pedro said.

San Pedro added that a public liability insurance would protect a company against legal liabilities arising from the operation of its business. It would also offer fair compensation to customers.

"This will indemnify the company when accidents happen within their premises. The insurance may also cover legal fees, costs and expenses and even hospital treatment," the mayor said. Under the city government's proposal, the public liability insurance would be one of the requirements for a company to get a license to operate.

"Companies will be protected against claims and their customers are assured of fair compensation for death or injuries," the mayor said.

He noted that Muntinlupa was fast becoming an alternative site for businesses in southern Metro Manila, citing the increasing number of building, malls and condominiums in the area.

"Thus, there is a need for such a policy for the welfare of the consumer," San Pedro said.

He said the requirement for liability insurance had already been adopted by other cities in Metro Manila like Quezon, Makati, Mandaluyong, Parañaque and Pasig.

"Injuries and accidents in establishments occur almost everyday. We need to make a comprehensive plan to ensure that claims resulting from these are addressed legally," San Pedro said.