Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ______ 
Introduced by Rep. Rodante D. Marcoleta and Rep. Caroline L. Tanchay 
EXPLANATORY NOTE 
This bill seeks to increase from Five Thousand Pesos (P5,000.00) to Twenty 
Thousand Pesos (P20,000.00) the total indemnity claim for death or serious 
physical injury to any passenger or third party without the necessity of proving 
fault or negligence. 
Section 378 of the Insurance Code of the Philippines provides that any claim 
for death or injury to any passenger or third party shall be paid without the 
necessity of proving fault or negligence of any kind, in so far as the indemnity in 
respect of any one person does not exceed Five Thousand Pesos (P5,000.00). 
However, the claim which shall be collected from the insurer of the vehicle where 
the claimant is riding, mounting or dismounting from, should be accompanied by 
some sworn proofs of loss such as police report, death certificate, medical report 
and hospitalization receipts. 
Although the law provides victims of vehicular accidents or their heirs 
immediate compensation, the existing Five Thousand Pesos (P5,000.00) “no-fault” 
indemnity is insufficient to finance hospitalization and other expenses for the 
damage done. This meager amount has remained unchanged for a long time and 
has been considered grossly disproportionate to cope with the present socio-
economic realities. Further, our present tort liability system for compensating 
victims of such accidents has been criticized as slow, expensive and unfair. 
This bill intends to increase “no fault” indemnity claim from Five Thousand 
Pesos (P5,000.00) to Twenty Thousand Pesos (P20,000.00) to provide ample 
protection to victims of vehicular accidents sustaining serious physical injuries or 
death, or their heirs, pending final determination of who is responsible for the 
accident and liable for the victim’s injuries or death. People from all walks of life, 
especially the poor, who could not afford to hire the services of a lawyer to protect 
their rights in court, shall primarily benefit from this proposed measure. 
July 12, 2022
5:25 pm
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This bill also addresses the dilemma of victims who shall be hospitalized 
and shall suffer frustration and mental anguish because the insurance company 
either delays payment or refuses to pay the hospital bills for the injuries sustained. 
In view of the foregoing, approval of this bill is urgently recommended. 
RODANTE D. MARCOLETA
 CAROLINE L. TANCHAY 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ______ 
Introduced by Rep. Rodante D. Marcoleta and Rep. Caroline L. Tanchay 
AN ACT 
INCREASING THE TOTAL INDEMNITY CLAIM FOR DEATH OR 
SERIOUS PHYSICAL INJURY TO ANY PASSENGER OR THIRD PARTY 
WITHOUT THE NECESSITY OF PROVING FAULT OR NEGLIGENCE, 
AMENDING FOR THE PURPOSE SECTION 378 OF THE INSURANCE 
CODE OF THE PHILIPPINES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Section 378 of Presidential Decree No. 1460, otherwise known 
as the “Insurance Code of 1978” is hereby amended to read as follows: 
“SEC. 378. Any claim for death or serious physical injury to 
any passenger or third party pursuant to the provisions of this Chapter 
shall be paid without the necessity of proving fault or negligence of any 
kind; Provided, That for purposes of this section — 
(i) The total indemnity in respect of any one person
shall not exceed [five] TWENTY thousand pesos;” 
x 
 
x 
 
x 
SEC. 2. Payment claims for physical injuries which are not serious, as defined 
under the Revised Penal Code, of any passenger or third party pursuant to the 
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provisions of this Chapter without the necessity of proving fault or negligence of any 
kind shall be maintained at Five Thousand Pesos (P5,000.00). 
SEC. 3. This Act shall take effect fifteen (15) days after its publication in at 
least two (2) newspapers of general circulation. 
Approved,