Insurance coverage caps hiked

THE Insurance Commission (IC) has raised the limit that can be claimed by third parties under compulsory motor vehicle liability insurance (CMVLI).

In a statement on Tuesday, the agency announced that the benefits were increased to P200,000 from the previous limit of P100,000. This is under the Insurance Memorandum Circular (IMC) 2024-01.

Also, the commission raised the amount of death indemnity, including burial and funeral expenses, to P200,000 instead of P70,000, and P30,000 for death indemnity, and burial and funeral expense indemnity, respectively.

The limit for nofault indemnity was also increased to P30,000 from the previous P15,000. This is applicable for any claim of death or bodily injury sustained by a passenger without the need to prove fault or negligence.

Meanwhile, incidental expenses that are not provided under the indemnities for bodily injury or death were said to be covered by the insurer subject to a maximum of P10,000.

The commission clarified that under the IMC 2024-01, there would be no increases in the CMVLI premiums to be paid as the prescribed rates under the previous IMC 4-2006 “shall remain in force and effect.”

It added that the premium adjustments emanating from the other increase in indemnities are still subject to further study.

“The CMVLI policy is a requirement under the law for the registration of a motor vehicle,” the commission said.

“The purpose of this insurance is to ensure that the owners or operators of motor vehicles can indemnify third parties or passengers for accidents resulting in death or bodily injury,” it added.