Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Constitution Hills, Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No._____ 
________________________________________________________________ 
Introduced by: REPRESENTATIVE EDWIN 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. 
January 26, 2023
5:24 pm
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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 i.e. mobile phones and tablets. 
 
It is for this reason that the approval of this Bill is being sought. 
 
 
EDWIN L. OLIVAREZ 
 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Constitution Hills, Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No._____ 
________________________________________________________________ 
Introduced by: REPRESENTATIVE EDWIN 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 “The Mobile Phone 
Insurance Act”. 
SECTION 2. Coverage. This Act shall cover the mechanical breakdown, loss 
and theft (including snatching, robber, and any other act if unlawful taking) of all 
kinds of mobile phones including tablets, ipads, and any other device capable of 
making and receiving call 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 
installment of the mobile phone’s purchase price. 
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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 sim-cards may avail 
of the same insurance policy under this Act by going to their respective carrier 
company and purchasing 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 advice a 
scheme or a plan regarding the levels of coverage of the mobile phone insurance as 
they deem reasonable, market and used the same a leverage against other competing 
carrier, 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 and Replacement. Once the insurance claim of the 
mobile phone owner has been approved and granted, the carrier company shall offer 
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, 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.