, 
15th CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S.B. No. 2001 
Introduced by Senator Ramon Bong Revilla, Jr. 
EXPLANATORY NOTE 
According to the National Disaster Coordinating Council, a total of 880,175 
families/4,320,699 persons were affected in 1,902 barangays, 155 municipalities, 32 cities of 25 
provinces in Regions I, II, III, IV-A, IV-B, V, VI, IX, XII, ARMM, CAR and NCR by typhoon 
"ONDOY". Estimated cost of damage is PhPI0.450 Billion. 
As a consequence, insurance claims from flood-damaged motor vehicles reached billions 
of pesos. Regrettably, some insurance companies purposely resort to "Acts of God" clause in 
their insurance policy to avoid payments to comprehensive insurance plan holders, saying that 
without the "Acts of God" provision, such would be beyond the scope of their insurance plan. 
This bill seeks to address this appalling development by proposing an amendment to the 
Insurance Code so as to deter insurance companies from their stringent but misleading 
comprehensive car insurance policies that do not indemnify owners of motor vehicles damaged 
or destroyed by typhoons. 
Immediate passage of this bill is highly needed. 
REVILLA, JR. 
Senator 


• 
15
th CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
2001 
S.B. No. __ _ 
Introduced by Senator Ramon Bong Revilla, Jr. 
AN ACT AMENDING SECTION 385 OF PRESIDENTIAL DECREE NO. 1460, AS AMENDED 
BY PRESIDENTIAL DECREE 1455, OTHERWISE KNOWN AS THE INSURANCE CODE OF 
THE PIDLIPPINES 
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" indenrnity 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 
docwnent 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,