SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Third Regular Session 
SENATE 
S,No, 2855 
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Introduced by Senator Miriam Defensor Santiago 
AN ACT 
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,JUL 15 F'2 :45 
TO DIRECT THE LAND TRANSPORTATION OFFICE TO REQUIRE THE 
DISCLOSURE OF INFORMATION RELATING TO THE FAIR MARKET VALUE 
AND SAFETY OF DAMAGED MOTOR VEHICLES 
EXPLANATORY NOTE 
Aside from the massive losses to agriculture, fisheries and infrastructure, there is 
yet another threat remaining from the devastating typhoons that ravage the country with 
increasing frequency. Thousands of cars and trucks that had been submerged under 
several feet of water have now dried out and are, in many cases, finding their way onto 
the used car market. For buyers, these cars may seem like any other used car offering 
once they have been cleaned up, but the threat of future problems is great with a machine 
that was never intended to be underwater. Many of these vehicles might be offered in 
faraway provinces with no seeming connection to the flooding, so unsuspecting 
customers need to be extra alert to spot possible damage. 
Hence, this bill seeks to ensure that totaled and flood-damaged vehicles are 
flagged forever so that consumers and auto retailers can make more informed decisions 
about the safety and fair market value of used cars. The bill would only require a 
permanent red flag affixed to the vehicle's record. Insurance companies would have to 
make available information about a totaled vehicle's engine and chassis numbers, the 
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reason for it being written off, mileage when it happened and whether the airbags 
deployed. l 
1 This bill was originally filed in the FOUlieenth Congress, Third Regnlar Session. 
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SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Third Regular Session 
SENATE 
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,JilL 15 1'2 :45 
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Introduced by Senator Miriam Defensor Santiago 
AN ACT 
TO DIRECT THE LAND TRANSPORTATION OFFICE TO REQUIRE THE 
DISCLOSURE OF INFORMATION RELATING TO THE FAIR MARKET VALUE 
AND SAFETY OF DAMAGED MOTOR VEHICLES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
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SECTION 1. Short Title. - This Act shall be known as the "Damaged Vehicle 
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Information Act." 
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SECTION 2. Definition of Terms. - As used in this Act, the term "person" 
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includes any individual, company, corporation, association, firm, partnership, society, or 
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any other entity, but does not include any governmental agency. 
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SECTION 3. Disclosure of Vehicle Damage Information. - Not later than three 
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months after the effectivity of this Act, the Land Transportation Office (L TO), shall issue 
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a regulation requiring all owners of motor vehicles which have been subjected to flood, 
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collision, fire, theft and recovery, or any other circumstance that adversely affects the fair 
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market value of such motor vehicle, to disclose to the public in a commercially 
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reasonable, electronically accessible manner the following information for every motor 
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vehicle that has been identified in such contract: 
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1. The engine and chassis numbers of the motor vehicle; 
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2. The date of the termination of the contract; 
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3. The odometer reading ofthe motor vehicle at the time of damage; 
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4. Whether, as a result of the incident resulting to the damage of the motor 
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vehicle, one or more airbags in the motor vehicle were deployed; 
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5. The cause of the damage, including whether such was through flood, collision, 
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fire, theft and recovery, or another cause; 
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The L TO shall rely on the private sector to collect, aggregate, and disclose to the 
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public the fair market value and safety information, and all such infonnation shall be 
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accessible by engine or chassis number. 
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SECTION 4. Separability Clause. - If any provision of this Act is held invalid or 
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unconstitutional, the same shall not affect the validity and effectivity of the other 
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provisions hereof. 
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SECTION 5. Repealing Clause. - All laws, decrees, orders, and issuances, or 
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portions thereof, which are inconsistent with the provisions of this Act, are hereby 
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repealed, amended or modified accordingly. 
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SECTION 6. Effectivity Clause. - This Act shall take effect fifteen (15) days after 
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its publication in the Official Gazette or in two (2) newspapers of general circulation. 
Approved, 
Irapt8J uly20 15 
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