Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
____________________________________________________________________ 
Introduced by HON. GUS S. TAMBUNTING 
AN ACT SAFEGUARDING THE WELFARE OF MOTORISTS AND ROAD USERS 
BY REQUIRING AFFORDABLE COMPREHENSIVE MOTOR VEHICLE GENERAL 
LIABILITY INSURANCE AND AMENDING REPUBLIC ACT NO. 10607 FOR THIS 
PURPOSE 
EXPLANATORY NOTE 
Under the current Insurance Code, as amended, only compulsory motor vehicle 
insurance on third party liability is required. Thus, there is a need to require motor 
vehicle owners and registrants to obtain and maintain comprehensive general liability 
insurance for their vehicles. This type of insurance provides coverage for liability, 
collision, and comprehensive damage to the insured vehicle, as well as any injuries or 
property damage caused by the insured vehicle in the event of an accident. The 
proposed measure also includes provisions for medical payments. 
Instead of fixing a schedule of coverage amounts, this measure provides flexibility in 
determining such amounts in accordance with the principles of adequacy, affordability, 
industry standards, risk factors, and inflation. This ensures that comprehensive general 
liability insurance is both practical and effective in ameliorating force majeure events 
involving motor vehicles. 
REP. GUS S. TAMBUNTING 
2nd District, Parañaque City 
January 24, 2023
8:00 am
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
______________________________________________________________________ 
Introduced by HON. GUS S. TAMBUNTING 
______________________________________________________________________ 
AN ACT SAFEGUARDING THE WELFARE OF MOTORISTS AND ROAD USERS BY 
REQUIRING AFFORDABLE COMPREHENSIVE MOTOR VEHICLE GENERAL LIABILITY 
INSURANCE AND AMENDING REPUBLIC ACT NO. 10607 FOR THIS PURPOSE 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. The following provision shall be added after the last paragraph of Section 386 
of Republic Act No. 10607: 
“(g) Comprehensive general liability 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 passengers in the event of an accident arising from the use thereof.” 
SEC. 2. Section 387 of Republic Act No. 10607 is hereby 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 general liability insurance policy 
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 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.” 
SEC. 3. Section 390 of Republic Act No. 10607 is hereby amended to read as follows: 
“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 a comprehensive general liability 
insurance policy 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. The comprehensive 
general liability insurance policy shall cover liability for death or bodily injuries 
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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: 
 
(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.” 
 
SEC. 4. A new provision shall be inserted after Section 390 of Republic Act No. 10607, as 
follows: 
 
“Section 390-A. Affordability Requirement. – (a) Every insurance company that offers 
mandatory comprehensive motor vehicle insurance in accordance with Section 390 
shall make every reasonable effort to ensure that its motor vehicle insurance policies 
are affordable for all individuals and families, 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) In order to ensure affordability for all motor vehicle owners, the Commissioner may 
also consider the following factors when setting insurance rates: 
 
i. 
Age, driving record, and occupation of the vehicle owner; 


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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. 
 
(e) The Commissioner shall have the authority to establish a program to assist low-
income individuals in obtaining and maintaining insurance coverage. 
 
(f) Insurance companies providing mandatory comprehensive motor vehicle insurance 
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.” 
 
SEC. 5. Separability Clause. — If any provision of this Act is declared invalid or 
unconstitutional, the other provisions not affected thereby shall continue to be in full force and 
effect. 
 
SEC. 6. Repealing Clause. — All laws, decrees, executive orders, rules and regulations and 
other issuances or part thereof, which are inconsistent with this Act, are hereby repealed, 
amended, or modified accordingly. 
 
SEC. 7. Effectivity Clause. — This Act shall take effect fifteen (15) days after its publication 
in the Official Gazette or in any newspaper of general circulation. 
 
Approved,