IC plans to increase CMVLI coverage to P200,000

The government plans to increase the indemnity claims of vehicular accident victims amid the need to improve overall insurance coverage in the country.

The Insurance Commission (IC) released the draft on the proposed increase in the benefits for Compulsory Motor Vehicle Liability Insurance (CMVLI).

The CMVLI is the most basic type of motor vehicle insurance among non-life firms, which pays for the expenses for the death or injuries suffered by passengers of an insured vehicle.

IC Commissioner Reynaldo Regalado said the main purpose of the CMVLI is to ensure that the owners and operators of motor vehicles have the means and resources to indemnify the death or injuries of passengers.

As such, the IC will increase the limit for third party liability for all CMVLI coverage at P200,000 each for all types of motor vehicles. This is double the current benefit at P100,000.

Similarly, the death indemnity including burial and funeral expenses will be at P200,000.

As of now, death indemnity is at P70,000 while burial and funeral expenses are at P30,000.

“There is a need to continually improve and increase the benefits and insurance coverage under the CMVLI policy to make them more responsive to the welfare and development needs of the individuals who are victims of any vehicular incidents or mishaps,” Regalado said.

The IC said any claim for death or bodily injuries sustained shall be paid without necessity of proving fault or negligence of any kind, provided the total indemnity in respect of any person shall be P30,000 for all motor vehicles.

Following the draft release, the IC is now soliciting comments and suggestions from all interested persons within 15 days, in a bid to promote participation from the public.