FIFTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
SENATE 
Senate Bill No. 2520 
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INTRODUCED BY SENATOR MANNY VILLAR 
EXPALANATORY NOTE 
The Philippines is one of the most disaster-prone countries in the world. Based 
on the recent study of the Center for Research and Epidemiology of Disasters in 
Belgium, the Philippines topped the list of countries most struck by natural disasters in 
2009 with 25, most of which are typhoons, floods and landslides. The study mentioned 
that the country suffered 
immens~ly from tropical storm "Ondoy" (Ketsana) and 
typhoons "Pepeng" (Parma) and "Kiko" (Morakot) in terms of mortality and damage to 
property. The National Disaster Coordinating Council reported that the amount of 
damage to property reached P10.95 Billion and P27.29 Billion caused by typhoons 
"Ondoy" and "Pepeng". During the typhoons, !thousands of motor vehicles were swept 
away by floods or buried by landslides, rendering these vehicles inoperative and in 
many instances, beyond repair. Owners of water-damaged motor vehicles filed 
insurance claims amounting to billions of pesos only to learn that their policies do not 
cover "Acts of God" or "Acts of Nature". 
Thus, to prevent such huge losses to car owners, this bill seeks to make it 
compulsory the inclusion of all "Acts of God" or fortuitous events, such as floods, 
landslides, typhoons, volcanic eruptions, earthquakes and other related calamities, in 
the comprehensive motor vehicle insurance policies, subject to additional fees, as may 
be prescribed by the Insurance Commission. 
If passed, the legislation will assist and 
ease the burden of the affected motor vehicle owners. 
The legislation is earnestly recommended for early enactment. 
ANNYV LLAR 


FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
Senate Bill No. 2520 
Introduced by Senator Manny Villar 
AN ACT 
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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 concemed 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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