SIXTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )

NS
; 5 <
First Regular Session ) >>

HOUSE OF REPRESENTATIVES
H.No, 2292

Introduced by Teodorico T. Haresco Jr.

EXPLANATORY NOTE

In 2009, Typhoon “Ondoy” and “Pepeng’” claimed not only hundreds of lives, but also
destroyed number of properties costing billions of pesos. In infrastructure alone, “Ondoy”
damaged Php 3.8 billion worth of properties, while damages brought by “Pepeng" amounted to
Php 1.09 billion.’ Moreover, in 2012, another disaster “Habagat’ brought damage to property
amounting to Php 2.26 billion, including Php 639 million in infrastructure and Php 1.62 billion in
agriculture.

Consequently, insurance claims reached billions of pesos right after the devastating
typhoons. According to the National Insurance Commission (NIC) Commissioner Eduardo
Malinis, Philippine Insurers and Reinsurers Association (PIRA) estimated that there were about
Php 11 billion worth of property claims from the victims of the typhoons and another Php 1
billion from motor vehicles. Unfortunately, some insurance companies used the “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, despite the fact that their
motor vehicles are covered by comprehensive insurance policy.

This bill seeks to propose 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, the passage of this bill is earnestly sought.

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TEODORICO T. HARESCOUR.

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SIXTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRE! IVES
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Introduced by Teodorico T. Haresco Jr.

AN ACT
AMENDING SECTION 385 OF PRESIDENTIAL 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, 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 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."

SECTION 2. Repealing Clause. All laws, executive orders, rules and regulations or any part
thereof inconsistent herewith are deemed repealed, modified or amended accordingly,
SECTION 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.

SECTION 4. Effectivity. - This Act shall take effect fifteen (15) days after its publication in
two (2) national newspapers of general circulation.

Approved,

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