IC doubles cap on vehicular accident insurance claims

THE Insurance Commission (IC) doubled the benefits that may be claimed by passengers for motor vehicle accidents that would result in death or bodily injury.

Memorandum Circular 2024-01 increased the limit for third-party liability that may be claimed under the compulsory motor vehicle liability insurance ( CMVLI) to P200,000, from P100,000 previously.

The CMVLI policy is a requirement under the law for the registration of a motor vehicle. The purpose of this protection plan is to ensure that owners or operators of motor vehicles can indemnify third parties or passengers for accidents resulting in death or bodily injury. Third-party liability Under the new circular, the IC said death indemnity was also hiked to P200,000, from P70,000 previously. The limit for compensation of burial and funeral expenses was likewise raised to that amount, from the old ceiling of P30,000.

No- fault indemnity also doubled from P15,000 to P30,000 for any claim of death or bodily injury sustained by a passenger without necessity of proving fault or negligence.

Other incidental expenses not provided under the indemnities for bodily injury and/or death shall be covered by the insurer subject to a maximum amount of P10,000.

Despite the expanded i nsurance coverage, the IC explained that the new circular would not enforce increases in the premiums to be paid for CMVLI, as the rates prescribed under an old circular dated 2006 “shall remain in force and effect”.

The regulator, however, said that premium adjustments arising from the higher indemnities “shall be subject to further study.” (Ian Nicolas P. Cigaral © Philippine Daily Inquirer)