The Insurance Commission (IC) has released a draft circular on the revised schedule of premiums and benefit coverage for the compulsory motor vehicle liability insurance (CMVLI).
As of Wednesday, the IC’s website said its plan aligns with the President Ferdinand Marcos Jr.’s commitment to enhance insurance coverage for victims of road traffic incidents.
Thus, the benefit limit due to the victim to be paid under the third-party liability will be raised from P200,000 to P400,000, according to the IC proposal.
“The primordial purpose of the CMVLI is to guarantee and ensure that the owners and/or operators of motor vehicles have the means and resources to indemnify, as far as applicable, the death and/or bodily injury of third parties or passengers arising from the operation of their motor vehicles,” the commission said in the draft issued on June 27.
“CMVLI aims to ensure that victims and/or their dependents can access immediate financial assistance regardless of the at-fault party’s ability to pay. Increasing the CMVLI benefits aligns with the national policy of ensuring accessible and adequate financial protection,” it added.
The commission said the Philippine Insurers and Reinsurers Association (PIRA) had submitted its proposed schedule of benefits and premium rates for each vehicle classification, which the IC reviewed and adopted as amended in the Insurance Code.
Based on the draft, the limit for third-party liability for all CMVLI coverage shall be P400,000 per incident for all types of motor vehicles. The previous limit was P200,000.
Meanwhile, the premium rates for CMVLI coverage are as follows: for taxi/public utility jeepney/minibus, the one-year coverage is proposed to have a total premium of P1,686.40, while for a three-year coverage, the premium will be P4,829.26.
Based on a 2006 circular, the current premium rates are P1,100 for a one-year coverage and P3,150 for a three-year coverage.
For tourist cars, the premiums will increase to P1,134.49 and P3,250.16 for one-year and three-year coverage, respectively.
The current rates are P740 for a one-year coverage and P2,120 for a three-year coverage.
The public utility bus/tourist bus will have a premium of P1,632.27 for one year and P4,671.64 for three years, as against the current figures of P1,450 and P4,150, respectively.
The insurance premiums for private cars, light/medium/heavy commercial vehicles, and motorcycles/trailers/tricycles are retained.
“All non-life insurance companies shall, within three months from the effectivity of this Circular, secure approval of the Commission prior to the issuance of all CMVLI policies reflecting the benefits provided in this circular,” the IC said.
