, 
, 
" 
14th Congress of the Republic) 
of the Philippines 
) 
3,d Regular Session 
) 
SENATE 
SBNo.~66 
,;.v' 
.; 
(}~W:H~E )'-- -,,' 
~J) ,,-\;~, ·.H'i 
~'.,.~;-~-. '\/''';' . 
Introduced by Senator Aquilino Q. Pimentel; Jr. 
EXPLANATORY NOTE 
The country experienced the costliest natural disaster. The recent devastation 
brought by strong typhoons "Ondoy" and "Pepeng" claimed, not only many lives, but 
also destroyed millions of properties which were not spared from nature's wrath. 
As a result, insurance claims from water-logged motor vehicles reached billions 
of pesos. 
It is however unfortunate that some insurance companies deliberately resort to 
"Acts of God" clause in insurance policy to avoid payments to insured car owners, 
leaving comprehensive insurance plan holders helpless in the midst of enormous 
losses. 
This is a deceptive policy of several insl,lrance companies which refuses to 
indemnify owners of motor vehicles, despite the fact that their motor vehicles are 
covered by comprehensive insurance policy. 
This bill seeks to address this scenario by proposing an amendment to the 
Insurance Code. 
Under this legislative measure, it is proposed that in case of a comprehensive 
motor vehicle insurance, no policy shall be issued and delivered in the Philippines 
unless it contains in substance the provision that comprehensive motor vehicle 
insurance shall cover all fortuitous events, such as floods, landslides, typhoon, volcanic 
eruptions, earthquakes and other related natural calamities provided that the accident, 
loss, damage or liability is directly or indirectly, proximately or remotely occasioned by, 
contributed to by or traceable to, arising out of, or in connection with the aforementioned 
natural events. 
Such inclusion of fortuitous events in the comprehensive motor vehicle insurance 
shall be subject to additional fees, as may be prescribed by the Insurance Commission. 
In view thereof, earnest approval of this bill is requested. 
~~ 
AQUILINO Q, PIMENTEL, JR. 


14th Congress of the Republic 
of the Philippines 
3rd Regular Session 
) 
) 
) 
SENATE 
SB No, 3566 
,,;£ ' 
1 
Of'rU;t > •• k 
,{", Si;, i-~L I, ,Hr 
H] 
JAN 18 P2 :42 
Introduced by Senator Aquilino Q. Pimentel,)r. '" 
AN ACT AMENDING SECTION 385 OF PRESIDENTIAL DECREE NO. 1460, AS AMENDED 
BY PRESIDENTIAL DECREE 1455, OTHERWISE KNOWN AS THE INSURANCE CODE OF 
THE PHILIPPINES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1, Section 385 of Presidential Decree 1460 otherwise known as the Insurance Code, 
as amended by Presidential Decree 1455, is hereby amended to read as follows: 
"Section, 385, The insurance company concerned shall forthwith ascertain the truth and 
extent of the claim and make payment within five working days after reaching, an agreement. If 
no agreement is reached, the insurance company shall pay only the "no fault" indemnity 
provided in section three hundred seventy-eight without prejudice to the claimant from pursuing 
his claim further, in which case, he shall not be required or compelled by the insurance company 
to execute any quit-claim or document releasing it from liability under the policy or insurance or 
surety bond issued," 
IN CASE OF A COMPREHENSIVE MOTOR VEHICLE INSURANCE, NO POLICY 
SHALL BE ISSUED AND DELIVERED IN THE PHILIPPINES UNLESS IT CONTAINS IN 
SUBSTANCE, THE PROVISION THAT COMPREHENSIVE MOTOR VEHICLE INSURANCE 
SHALL COVER ALL FORTUITOUS EVENTS, SUCH 
AS 
FLOODS, 
LANDSLIDES, 
TYPHOON, VOLCANIC ERUPTIONS, EARTHQUAKES, AND OTHER RELATED NATURAL 
CALAMITIES, PROVIDED THAT THE ACCIDENT, LOSS, DAMAGE OR LIABILITY IS 
DIRECTLY OR 
INDIRECTLY, 
PROXIMATELY OR 
REMOTELY OCCASIONED 
BY, 
CONTRIBUTED TO BY OR TRACEABLE TO, ARISING OUT OF, OR IN CONNECTION WITH 
THE AFOREMENTIONED NATURAL EVENTS. 
SUCH INCLUSION OF FORTUITOUS EVENTS IN THE COMPREHENSIVE MOTOR 
VEHICLE INSURANCE SHALL BE SUBJECT TO ADDITIONAL FEES, AS MAY BE 
PRESCRIBED BY THE INSURANCE COMMISSION. 
In case of any dispute in the enforcement of the provisions of any policy issued pursuant 
to this Chapter, the adjudication of such dispute shall be within the original and exclusive 
jurisdiction of the Commissioner, subject to limitations provided in section four hundred sixteen," 
SECTION 2, Repealing Clause, All laws, executive orders, rules and regulations or any 
part thereof inconsistent herewith are deemed repealed, modified or amended accordingly, 
SECTION 3, 
Separability Clause, 
In case any provision of this Act is declared 
unconstitutional or invalid, the other provisions hereof which are not affected thereby shall 
continue in full force and effect. 
SECTION 4, Effectivity, -
This Act shall take effect fifteen (15) days after its publication 
in two (2) national newspapers of general circulation, 
Approved,