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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Sixteenth Congress
First Regular Session

HOUSE BILL NO. $06

Introduced by Honorable Erlinda M. Santiago

EXPLANATORY NOTE

This bill seeks to increase from Five Thousand Pesos (P5,000.00) to
Fifty Thousand Pesos (P50,000.00) the total indemnity claim for death or
rious physical injury to any passenger or third party without the necessity
of proving fault or negligence.

Section 378 of the Insurance Code of the Philippines provides that any
claim for death or injury to any passenger or third party shall be paid without
the necessity of proving fault or negligence of any kind, in so far as the
indemnity in respect of any one person does not exceed Five Thousand
Pesos (P5,000.00). However, the claim which shall be collected from the
insurer of the vehicle where the claimant is riding, mounting or dismounting,
from, should be accompanied by some sworn proofs of loss such as police
report, death certificate, medical report and hospitalization receipts.

Although the law provides victims of vehicular accidents or their heirs
immediate compensation, the existing Five Thousand Pesos (P5,000.00)
"no-fault" indemnity is insufficient to finance hospitalization and other
expenses for the damage done. This meager amount has remained
unchanged for a long time and has been considered grossly disproportionate
to cope with the present socio-economic realities. Further, our present tort
liability system for compensating victims of such accidents has been
criticized as slow, expensive and unfair.

This bill intends to increase the "no-fault" indemnity claim from Five
Thousand Pesos (P5,000.00) to Fifty Thousand Pesos (P50,000.00) to
provide ample protection to victims of vehicular accidents sustaining serious
physical injuries or death, or their heirs, pending final determination of who


is responsible for the accident and liable for the victim's injuries or death,
People from all walks of life, especially the poor, who could not afford to
hire the services of a lawyer to protect their rights in court, shall primarily
benefit from this proposed measure.

This bill also addresses the dilemma of victims who shall be
hospitalized and shall suffer frustration and mental anguish because the
insurance company either delays payment or refuses to pay the hospital bills
for the injuries sustained.

In view of the foregoing, approval of this bill is urgently
recommended.

ERIANDA M. x TIAGO


Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon City, Metro Manila

Sixteenth Congress
First Regular Session

HOUSE BILL NO. $66

Introduced by Honorable Erlinda M. Santiago

AN ACT
INCREASING THE TOTAL INDEMNITY CLAIM FOR DEATH OR
RIOUS PHYSICAL INJURY TO ANY PASSENGER OR THIRD
PARTY WITHOUT TH .CESSITY OF PROVING FAULT OR
NEGLIGENCE, AMENDING FOR THE PURPOSE SECTION 378 OF
THE INSURANCE CODE OF THE PHILIPPINES

Be it enacted by the Senate and House of Representatives of the
Philippines in Congress assembled:

SECTION 1. Section 378 of Presidential Decree No. 1460,
otherwise known as the "Insurance Code of 1978" is hereby amended to read
as follows.

"Sec. 378. Any claim for death or serious physical injury

to any passenger or third party pursuant to the provisions of this

Chapter shall be paid without the necessity of proving fault or

negligence of any kind; Provided, That for purposes of this

section —


(i) The total indemnity in respect of any one
person shall not exceed [five] FIFTY thousand

pesos;"

SEC. 2. Payment claims for physical injuries which are not
serious, as defined under the Revised Penal Code, of any passenger or third
party pursuant to the provisions of this Chapter without the necessity of
proving fault or negligence of any kind shall be maintained at Five

Thousand Pesos (Php 5,000.00).

SEC. 3. This Act shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of general circulation.

Approved,