1 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH (19th) CONGRESS 
THIRD REGULAR SESSION 
House Bill No. ____ 
Introduced by 
Rep. BERNADETTE R. HERRERA 
AN ACT EXEMPTING MOTOR VEHICLE OWNERS  
WITH COMPREHENSIVE INSURANCE  
FROM THE COMPULSORY THIRD-PARTY LIABILITY INSURANCE REQUIREMENT, 
THEREBY AMENDING REPUBLIC ACT NO. 10607 FOR THIS PURPOSE 
EXPLANATORY NOTE 
This bill seeks to enhance the protection afforded to motorists, passengers, and third 
parties involved in vehicular accidents by requiring motor vehicle owners to secure 
comprehensive insurance coverage. Such coverage will protect registered vehicle 
owners and accident victims from the high costs of damages, repairs, and liability 
payments arising from collision, fire, or theft. In line with this, the measure proposes the 
abolition of the compulsory motor vehicle insurance on third-party liability (CTPL) in the 
event that the motor vehicle owner has already obtained a comprehensive motor vehicle 
insurance policy. 
Under Section 387 of Republic Act No. 10607, otherwise known as the Amended 
Insurance Code, all land transportation operators or motor vehicle owners are mandated 
to secure motor vehicle insurance or surety bonds. The intent of this requirement is to 
assure victims of vehicular accidents immediate financial assistance or indemnity, 
regardless of the financial capability of the liable operator or owner. 
However, the current implementation of CTPL insurance is outdated and insufficient. 
Insurance Memorandum Circular No. 2024-01 limits third-party or passenger liability 
under CTPL coverage to only ₱200,000. This amount is often inadequate to cover the 
actual costs of damages, medical expenses, and other liabilities incurred in vehicular 
accidents. Furthermore, CTPL claims are rarely filed, as the process is often 
cumbersome, riddled with bureaucratic red tape, and inaccessible to many victims. 
Comprehensive insurance, on the other hand, already includes third-party liability 
coverage while providing broader and more robust protection. It covers own damage, 
theft, bodily injury, property damage, and passenger personal accidents. This type of 
insurance is widely available and is already availed of by most motorists. Requiring CTPL 
insurance on top of comprehensive coverage is therefore redundant and imposes an 
unnecessary financial burden on vehicle owners, particularly those who are already 
struggling to meet rising costs of living. 
This bill proposes that all motor vehicle owners be required to secure either 
comprehensive insurance or third party liability insurance as a prerequisite for vehicle 
registration. By doing so, this measure ensures not only the protection of the registered 
owner and their vehicle but also the safety and financial security of passengers, third 
parties, and their properties. 
The measure further addresses the limitations of current regulations by introducing 
flexibility in determining coverage amounts. Instead of a fixed schedule, the bill provides 
that coverage be adjusted based on principles of adequacy, affordability, industry 
January 13, 2025
5:45 pm
11275


2 
standards, risk factors, and inflation. This ensures that the insurance coverage remains 
practical and effective in mitigating the financial impact of vehicular accidents and 
unforeseen events. 
While the principle behind requiring CTPL insurance is commendable, its redundancy 
when paired with comprehensive insurance negates its utility. Comprehensive insurance 
alone already fulfills the intent of ensuring accountability and financial security, while also 
streamlining the registration process and reducing the financial burden on motorists. 
Finally, this bill underscores the paramount obligation of motor vehicle operators and 
owners to exercise responsibility and accountability. Beyond merely complying with 
regulations, they must ensure the safety of their passengers, their vehicles, and the 
general public. 
In light of these considerations, the approval of this bill is earnestly sought to provide a 
more practical, equitable, and effective system of motor vehicle insurance that truly serves 
the needs of the Filipino people. 
BERNADETTE “BH” HERRERA 


3 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH (19th) CONGRESS 
THIRD REGULAR SESSION 
House Bill No. ____ 
Introduced by 
Rep. BERNADETTE R. HERRERA 
AN ACT EXEMPTING MOTOR VEHICLE OWNERS  
WITH COMPREHENSIVE INSURANCE  
FROM THE COMPULSORY THIRD-PARTY LIABILITY INSURANCE REQUIREMENT, 
THEREBY AMENDING REPUBLIC ACT NO. 10607 FOR THIS PURPOSE 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
Section 1. Chapter VI of Republic Act No. 10607, otherwise known as the Amended 
Insurance Code, is hereby amended to read as follows: 
“CHAPTER VI 
COMPULSORY COMPREHENSIVE MOTOR VEHICLE / 
 THIRD PARTY LIABILITY  
INSURANCE” 
Section 2. To this effect, provisions of laws relating to the compulsory requirement of 
availing an insurance policy pertaining to third-party liability for death or bodily injuries 
and damage to property arising from motor vehicle accidents, including but not limited to, 
Republic Act No. 10607, as amended, are hereby repealed. 
Section 3. Further, Section 386 of the same Act is amended, to wit: 
“x x x 
Section 386. For purposes of this chapter: 
x x x 
(f) Insurance policy or Policy refers to a contract of insurance against
passenger and third-party liability for death or bodily injuries and damage
to property arising from motor vehicle accidents, AS WELL AS ANY
DAMAGE TO THE INSURED VEHICLE AND MEDICAL PAYMENTS
FOR 
INJURIES 
SUSTAINED 
BY 
THE 
POLICYHOLDER 
OR
PASSENGERS IN THE EVENT OF AN ACCIDENT ARISING FROM THE
USE THEREOF.
(G)
COMPREHENSIVE MOTOR VEHICLE INSURANCE POLICY
REFERS TO A TYPE OF INSURANCE THAT PROVIDES COVERAGE
TO INDEMNIFY THE DEATH, BODILY INJURY, AND/OR DAMAGE TO
PROPERTY OF A THIRD PARTY OR PASSENGER, AS WELL AS ANY
DAMAGE TO THE INSURED VEHICLE AND MEDICAL PAYMENTS
FOR 
INJURIES 
SUSTAINED 
BY 
THE 
POLICYHOLDER 
OR
11275


4 
PASSENGERS IN THE EVENT OF AN ACCIDENT ARISING FROM THE 
USE THEREOF.” 
Section 4. Section 387 of RA 10607 is likewise amended to read as follows: 
“SECTION 387. It shall be unlawful for any land transportation operator or 
owner of a motor vehicle to operate the same in the public highways unless 
there is in force in relation thereto a COMPREHENSIVE MOTOR 
VEHICLE policy of INSURANCE POLICY, or THIRD PARTY LIABILITY 
INSURANCE POLICY [or guaranty in cash or surety bond] issued in 
accordance with the provisions of this chapter to indemnify the death, 
bodily injury, and/or damage to property of a third-party or passenger, [as 
the case may be, arising from the use thereof.] AS WELL AS ANY 
DAMAGE TO THE INSURED VEHICLE AND MEDICAL PAYMENTS 
FOR 
INJURIES 
SUSTAINED 
BY 
THE 
POLICYHOLDER 
OR 
PASSENGERS IN THE EVENT OF AN ACCIDENT ARISING FROM THE 
USE THEREOF.” 
Section 5. Section 388 of the same law is likewise amended to read as follows: 
“SECTION 388. The Commissioner shall furnish the Land Transportation 
Office with a list of insurance companies authorized to issue 
COMPREHENSIVE MOTOR VEHICLE INSURANCE POLICIES, or 
THIRD PARTY LIABILITY INSURANCE POLICIES, or [the policy of 
insurance or surety bond] required by this chapter.” 
Section 6. Moreover, Section 389 of the same law is hereby amended to read as follows: 
“SECTION 389. The Land Transportation Office shall not allow the 
registration or renewal of registration of any motor vehicle without first 
requiring from the land transportation operator or motor vehicle owner 
concerned the presentation and filing of a substantiating documentation in 
a form approved by the Commissioner evidencing that the [policy of 
insurance or guaranty in cash or surety bond] COMPREHENSIVE MOTOR 
VEHICLE INSURANCE 
POLICY or THIRD PARTY LIABILITY 
INSURANCE POLICY required by this chapter is in effect.” 
Section 7. Further, Section 390 of the same law is amended, to wit: 
“SECTION 390. Every land transportation operator and every owner of a 
motor vehicle shall, before applying for the registration or renewal of 
registration of any motor vehicle, at his option, either secure 
COMPREHENSIVE MOTOR VEHICLE INSURANCE POLICY or THIRD 
PARTY LIABILITY INSURANCE POLICY an insurance policy or surety 
bond issued by any insurance company authorized by the Commissioner 
or make a cash deposit in such amount as herein required as limit of 
liability for purposes specified in Section 387. 
(a) In the case of a land transportation operator, the insurance guaranty in
cash or surety bond shall cover liability for death or bodily injuries of
third-parties and/or passengers arising out of the use of such vehicle in
the amount not less than Twelve thousand pesos (P12,000.00) per
passenger or third-party and an amount, for each of such categories,
in any one accident of not less than that set forth in the following scale:
(1) Motor vehicles with an authorized capacity of twenty-six (26) or
more passengers: Fifty thousand pesos (P50,000.00);


 
5 
(2) Motor vehicles with an authorized capacity of from twelve (12) to 
twenty-five (25) passengers: Forty thousand pesos (P40,000.00); 
 
(3) Motor vehicles with an authorized capacity of from six (6) to 
eleven (11) passengers: Thirty thousand pesos (P30,000.00); 
(4) Motor vehicles with an authorized capacity of five (5) or less 
passengers: Five thousand pesos (P5,000.00) multiplied by the 
authorized capacity. 
 
Provided, however, That such cash deposit made to, or surety bond 
posted with, the Commissioner shall be resorted to by him in cases of 
accidents the indemnities for which to third-parties and/or passengers are 
not settled accordingly by the land transportation operator and, in that 
event, the said cash deposit shall be replenished or such surety bond shall 
be restored within sixty (60) days after impairment or expiry, as the case 
may be, by such land transportation operator, otherwise, he shall secure 
the insurance policy required by this chapter. The aforesaid cash deposit 
may be invested by the Commissioner in readily marketable government 
bonds, and/or securities. 
 
(b) In the case of an owner of a motor vehicle, the insurance or guaranty 
in cash or surety bond shall cover liability for death or injury to third-parties 
in an amount not less than that set forth in the following scale in any one 
accident: 
 
(1) Private Cars 
 
(i) Bantam: Twenty thousand pesos (P20,000.00); 
 
(ii) Light: Twenty thousand pesos (P20,000.00); and 
 
(iii) Heavy: Thirty thousand pesos (P30,000.00). 
 
 
(2) Other Private Vehicles 
 
(i) Tricycles, motorcycles and scooters: Twelve thousand pesos 
(P12,000.00); 
 
(ii) Vehicles with an unladen weight of 2,600 kilos or less: Twenty 
thousand pesos (P20,000.00); 
 
(iii) Vehicles with an unladen weight of between 2,601 kilos and 
3,930 kilos: Thirty thousand pesos (P30,000.00); and 
 
(iv) Vehicles with an unladen weight over 3,930 kilos: Fifty 
thousand pesos (P50,000.00). 
 
The Commissioner may, if warranted, set forth schedule of indemnities for 
the payment of claims for death or bodily injuries with the coverages set 
forth herein.]  
 
THE COMPREHENSIVE MOTOR VEHICLE INSURANCE POLICY OR 
THIRD PARTY LIABILITY INSURANCE POLICY SHALL COVER 
LIABILITY FOR DEATH OR BODILY INJURIES OF THIRD PARTIES 
AND PASSENGERS, AS WELL AS ANY DAMAGE TO THE INSURED 
VEHICLE AND MEDICAL PAYMENTS FOR INJURIES SUSTAINED BY 
THE POLICYHOLDER OR PASSENGERS IN THE EVENT OF AN 
ACCIDENT ARISING FROM THE USE OF SUCH VEHICLE, IN THE 
COVERAGE 
AMOUNTS 
TO 
BE 
DETERMINED 
BY 
THE 
COMMISSIONER 
IN 
ACCORDANCE 
WITH 
THE 
FOLLOWING 
PRINCIPLES:  


6 
(A) ADEQUACY. – THE COVERAGE AMOUNT SHOULD BE
SUFFICIENT TO PROVIDE FOR THE POTENTIAL FINANCIAL
LOSSES THAT MAY RESULT FROM AN ACCIDENT INVOLVING
THE INSURED VEHICLE.
(B) AFFORDABILITY. – THE COVERAGE AMOUNT SHOULD BE
REASONABLY PRICED, SO THAT IT IS AFFORDABLE FOR THE
MAJORITY OF VEHICLE OWNERS AND OPERATORS.
(C) INDUSTRY STANDARDS. – THE COVERAGE AMOUNT
SHOULD BE IN LINE WITH INDUSTRY STANDARDS AND
COMPARABLE TO WHAT IS OFFERED BY INSURANCE
PROVIDERS IN THE MARKET.
(D) RISK FACTORS. – THE COVERAGE AMOUNT SHOULD
TAKE INTO ACCOUNT THE RISK FACTORS ASSOCIATED
WITH DIFFERENT TYPES OF VEHICLES, SUCH AS THE SIZE
AND CAPACITY OF THE VEHICLE, AS WELL AS THE
INTENDED USE OF THE VEHICLE.
(E) INFLATION. – THE COVERAGE AMOUNT SHOULD BE
ADJUSTED ACCORDINGLY TO INFLATION, TO ENSURE THAT
IT REMAINS ADEQUATE OVER TIME.
(F) REASSESSMENT. – THE COVERAGE AMOUNT SHOULD BE
REASSESSED REGULARLY AND ADJUSTED AS NECESSARY,
TAKING INTO ACCOUNT CHANGES IN THE VEHICLE
POPULATION 
AND 
ACCIDENT 
STATISTICS. 
THE
COMMISSIONER 
SHALL 
ISSUE 
THE 
IMPLEMENTING
REGULATION FOR THIS SECTION WITHIN SIX (6) MONTHS
FROM THE EFFECTIVITY OF THIS PROVISION.”
Section 8. There shall also be created and inserted after Section 390 of RA 10607 to 
read as follows: 
“SECTION 390-A. AFFORDABILITY REQUIREMENT. – 
(A) EVERY INSURANCE COMPANY THAT OFFERS MANDATORY
COMPREHENSIVE MOTOR VEHICLE INSURANCE POLICY OR THIRD
PARTY LIABILITY INSIRANCE POLICY IN ACCORDANCE WITH
SECTION 390 SHALL MAKE EVERY REASONABLE EFFORT TO
ENSURE THAT THE OFFERED MOTOR VEHICLE INSURANCE
POLICIES ARE AFFORDABLE, TAKING INTO CONSIDERATION
THEIR INCOME LEVEL AND OTHER FACTORS PROVIDED IN THIS
PROVISION.
(B) IN ORDER TO BE CONSIDERED AFFORDABLE, AN INSURANCE
POLICY SHALL NOT EXCEED A SPECIFIED PERCENTAGE OF AN
INDIVIDUAL OR FAMILY’S ANNUAL INCOME, AS DETERMINED BY
THE COMMISSIONER, IN CONSULTATION WITH THE INSURANCE
COMMISSION. IN ORDER TO DETERMINE WHAT PERCENTAGE OF
AN INDIVIDUAL OR FAMILY’S ANNUAL INCOME AN INSURANCE
POLICY SHOULD NOT EXCEED, THE COMMISSIONER SHALL
CONSIDER FACTORS SUCH AS THE MEDIAN INCOME LEVEL, THE
COST OF LIVING, AND THE AVERAGE COST OF MOTOR VEHICLE
INSURANCE IN THE REGION.
(C) FOR PURPOSES OF ENSURING AFFORDABILITY FOR ALL
MOTOR VEHICLE OWNERS, THE COMMISSIONER MAY ALSO


7 
CONSIDER 
THE 
FOLLOWING 
FACTORS 
WHEN 
SETTING 
INSURANCE RATES: 
I.
AGE, DRIVING RECORD, AND OCCUPATION
OF THE VEHICLE OWNER;
II.
TYPE OF VEHICLE;
III.
GEOGRAPHIC LOCATION;
IV.
CREDIT SCORE OR CREDIT BEHAVIOR OF
THE VEHICLE OWNER; AND
V.
ANY 
OTHER 
RELEVANT 
FACTORS
DETERMINED BY THE COMMISSIONER.
(D)
THE COMMISSIONER SHALL HAVE THE AUTHORITY TO
ESTABLISH A PROGRAM TO ASSIST LOW INCOME INDIVIDUALS IN
OBTAINING AND MAINTAINING INSURANCE COVERAGE.
(E)
INSURANCE 
COMPANIES 
PROVIDING 
MANDATORY
COMPREHENSIVE MOTOR VEHICLE INSURANCE AND THIRD
PARTY LIABILITY INSURANCE POLICY IN ACCORDANCE WITH
SECTION 390 SHALL EXPLORE PRACTICAL AND FINANCIALLY
FEASIBLE INSURANCE OFFERINGS FOR LOW-END VEHICLES,
DEPRECIATED VEHICLES, AND SUCH OTHER VEHICLES THAT ARE
NORMALLY EXCLUDED FROM MOTOR VEHICLE INSURANCE
OFFERINGS 
IN 
THE 
MARKET. 
SUCH 
COMPANIES 
ARE
ENCOURAGED TO BUNDLE THEIR OFFERINGS WITH CREDIT
ARRANGEMENTS FROM ACCREDITED LENDING COMPANIES,
FINANCING 
COMPANIES, AND 
OTHER 
CONSUMER 
CREDIT
INSTITUTIONS.”
Section 9. Implementing Rules and Regulations. The Land Transportation Office 
(LTO), shall issue within ninety (90) days from the effectivity of this Act, the rules and 
regulations necessary to effectively implement its provisions. 
Section 10. Separability Clause. If, for any reason, any portion or provisions of this Act 
is declared unconstitutional, the remainder of this Act or any provision not affected thereby 
shall remain in full force and effect. 
Section 13. Repealing Clause. All laws, executive orders, proclamations, rules, 
regulations, and other issuances or parts inconsistent with the provisions of this Act are 
hereby repealed or amended accordingly. 
Section 14. Effectivity. This Act shall take effect fifteen (15) days following its complete 
publication in the Official Gazette or a newspaper of general circulation. 
Approved,