The lnsurance Commission (IC) has revised the death indemnity limit for third-party liability for all Compulsory Motor Vehicle Liability lnsurance (CMVLI) coverage to PHP200,000 ($3,558) each for all types of motor vehicles.
The regulator announced this in an insurance memorandum circular released on its website yesterday but dated 7 February. The circular will take effect 15 days after its publication in the Official Gazette.
The limit is currently PHP100,000 each for all types of motor vehicles with PHP70,000 for death immunity and PHP30,000 for funeral and burial expenses.
There is an additional PHP100,000 for passenger liability if the motor vehicle is used as a public utility vehicle. These limits were announced in 2006.
The IC says that there is a need to improve/increase the benefits and insurance coverages under the CMVLI policy to make it more responsive to the welfare and development needs of the individuals who are victims of vehicular incidents or mishaps.
The circular also includes a Schedule of lndemnities relating to compensation for death, bodily injuries, professional fees and hospital charges for services rendered to traffic incident victims under the CMVLI policy. The maximum allowable fees or charges (other than death benefits) remain unchanged from 2006.
No fault indemnity
The circular also said, “Any claim for death or bodily injuries sustained by a passenger or third party shall be paid without necessity of proving fault or negligence of any kind provided the total indemnity in respect of any person shall be PHP30,000.00 (since 2006: PHP15,000) for all motor vehicles.
Motor tariffs unchanged in the meanwhile
The circular says that premium rates for one-year and three-year CMVLl coverage set out in 2006 shall remain in force and effect. Premium adjustments arising from the increase in benefits as provided in the latest circular shall be subject to study once sufficient data are gathered during the implementation of this circular.
Source: asiainsurancereview.com