HOUSE OF REPRESENTATIVES
Quezon City

House Bill No.

Introduced by REPRESENTATIVE ERIC L. OLIVAREZ

EXPLANATORY NOTE

More and more people have been availing of monthly plans for their
high end mobile phones and gadgets in which whether they have the
phone or not, they are still liable for the 24-month line rental. Hence,
getting one’s phone stolen, broken, destroyed or otherwise lost can be
such a hassle and can cause unnecessary expenditures on the part of
the user. \

Insuring one’s phone is a simple way to protect oneself against the
expense and inconvenience of having to replace his or her mobile phone.
A lot of countries have already required their respective carriers to offer
mobile phone insurance to their clientele. In our country, however, little
is known and heard of this kind of insurance and the benefit of which is
not being emphasized enough to help mobile phone users make a well-
informed decision regarding the same.

Mobile phone insurance may seem trivial at first, but considering
the prevalence of snatching, robbery, and theft in our country, especially
in Metro Manila where almost all people own mobile phones and majority
of such owners have high end models thereof, surely mobile phone
insurance can be a good cost-saving solution for the public.


Records show that the National Telecommunications Commission
received a total of 813 actual cases of missing cellular phones from
January to November 2009. In the same year, Metro Manila registered
the highest number of cases at 785. The commission said the total figure
was 10 percent higher compared to the previous year. The figures do not
even include unreported incidents of cell phone losses.

The said statistics have been constantly increasing as the years
went by, reaching more than 1,500 cases of missing phones for the year
2013, with Metro Manila being the area with the highest number of cases
considering its population and the lifestyle pattern of these people.

Considering these numbers, it is quite obvious that mobile phone
insurance is indeed a good mechanism to somehow alleviate the costs
that the consumers must bear when they lose their electronic gadgets ie.
mobile phones and tablets.

It is for this reason that the approval of this Bill is being sought.

anc. O~,

ERIC OLIVAREZ


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House Bill No.

Introduced by REPRESENTATIVE ERIC L. OLIVAREZ

AN ACT MANDATING MOBILE PHONE NETWORK SERVICE
PROVIDERS TO OFFER INSURANCE FOR MOBILE PHONES

SECTION 1. Short Title. This Act shall be known as “The Mobile
Phone Insurance Act”.

SECTION 2. Coverage. This Act shall cover the mechanical
breakdown, loss and theft (including snatching, robbery, and any other
act of unlawful taking) of all kinds of mobile phones including tablets,
ipads, and any other device capable of making and receiving calls and
text messages.

SECTION 3. Mobile Phone Insurance Must be Offered. A person
who purchases a mobile device from any carrier must be informed and
offered of the mobile phone insurance policy.

SECTION 4. Availment of Insurance Option. Once the mobile
phone buyer agrees to purchase or avail of the insurance option, his or
her credit card details may then be included within the insurance
scheme, if the mobile phone purchasers so desire, for purposes of


automatic payment of the insurance policy. An insurance policy shall be
filled up by the said buyer and the carrier company shall process the
said policy and keep a record of the same.

SECTION 5. Option to pay the Insurance Premium on
installments. The mobile phone buyer may opt to pay the insurance
premium on monthly installments in which case the cost for the
insurance premium shall be included in the said installments of the
mobile phone’s purchase price.

SECTION 6. Commencement of Insurance. Provided the mobile
phone buyer has agreed to purchase the insurance option, his or her
mobile device is covered from the day of purchase of the said insurance
policy. Cover continues on a monthly rolling basis, with the first month
being free, subject to the buyer’s having paid the monthly premium.

SECTION 7. Insurance of Pre-existing Mobile Phone owners.
People who already own mobile phones, whether with prepaid or postpaid
simcards may avail of the same insurance policy under this Act by going
to their respective carrier company and purchasing the policy. Insurance
commences from the day of purchase of the said insurance policy,
subject to the carrier’s inspection, assessment or adjustment of the
condition of the mobile phone of the said person.

SECTION 8. Levels of Coverage. The carrier company, offering
insurance on its own or through a tie up with an independent insurance
corporation, may advise a scheme or plan regarding the levels of coverage
of the mobile phone insurance as they deem reasonable, marketable and
use the same as a leverage against other competing carriers, provided the
said scheme or set-up is within the limitation or regulation prescribed by
the National Telecommunications Commission in coordination with the
Insurance Commission.

SECTION 9. Repair or Replacement. Once the insurance claim of
the mobile phone owner has been approved and granted, the carrier
company shall offer repair or replacement of the mobile phone depending
on the circumstances of each case as provided for by Section 2 of this
Act.


SECTION 10. Implementing Rules and Regulations. The
National Telecommunications Commission in coordination with the
Insurance Commission shall promulgate the Implementing Rules and
Regulations to carry out the provisions of this Act. Such rules and
regulations shall take effect upon their publication in three (3)
newspapers of general circulation.

SECTION 11. Repealing Clause. All laws, presidential decrees,
letters of instruction, executive orders, rules and regulations insofar as
they are inconsistent with this Act, are hereby repealed or amended as
the case may be.

SECTION 12. Separability Clause. In the event that any provision
of this Act or any portion thereof is declared unconstitutional by a
competent court, the other provisions shall not be affected thereby and
shall remain valid and enforceable.

SECTION 13. Effectivity Clause. This Act shall take effect after its
complete publication in at least three (3) newspapers of general
circulation.

APPROVED.