FIFTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. 576 
OH::.a;,_ '-
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
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We have witnessed the costly devastation brought by strong typhoons "Ondoy" 
and "Pepeng" to our people's lives and properties. 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 insurance 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. 
Senator 


FIFTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
10 Jill. -7 A,L :,,) 
SENATE 
Senate Bill No. 576 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
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 se~tion 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, SUC 
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." 
SEC 2. Repealing Clause. - All laws, executive orders, rules and regulations or 
any part thereof inconsistent herewith are deemed repealed, modified or 
amended accordingly. 
SEC 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. 
SEC 4. 
Effectivity. -
This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in at least two (2) newspapers of general 
circulation. 
Approved,