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

EIGHTEENTH CONGRESS
First Regular Session

0149

HOUSE BILL NO. _* *__

Introduced by Honorable Rodante D. Marcoleta

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 serious
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 “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.



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

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 0149
Introduced by Honorable Rodante D. Marcoleta

AN ACT
INCREASING THE TOTAL INDEMNITY CLAIM FOR DEATH OR
SERIOUS PHYSICAL INJURY TO ANY PASSENGER OR THIRD PARTY
WITHOUT THE NECESSITY 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;”

x x 5

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 (P5,000.00).

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

Approved,