Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasang Pambansa, Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 2988

INTRODUCED BY REP. JOSEPH VICTOR G. EJERCITO

EXPLANATORY NOTE

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.

=:

JOSEPH VICTOR G. EJERCITO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasang Pambansa, Quezon City

FIFTEENTH CONGRESS
First Regular Session

“
HOUSE BILL NO. 2 3

INTRODUCED BY REP. JOSEPH VICTOR G. EJERCITO

AN ACT
AMENDING SECTION 385 OF PRESDENTIAL 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 section 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,