SEVENTEENTH CONGRESS OF THE)
REPUBLIC OF THE PHILIPPINES )

Third Regular Session )
SENATE 18 AUG IS pay
s.No. 1945 “o
REC.
Introduced by Senator Richard J. Gordon io

AN ACT AMENDING SECTIONS 386 AND 391 OF R.A. NO. 10607,
OTHERWISE KNOWN AS THE INSURANCE CODE, AS AMENDED

EXPLANATORY NOTE

Chapter VI of the Insurance Code of the Philippines (as amended) provides for
Compulsory Motor Vehicle Liability Insurance for the registration of motor vehicles. The
Code provides that, it shall be unlawful for any land transportation operator or owner of
@ motor vehicle to operate the same in public highways unless there is in force a policy
of insurance or guaranty, in cash or surety bond, to indemnify the death, bodily injury,
and/or damage to property of a third-party or passenger, as the case may be, arising
from the use thereof.

In cases of death or injury to any passenger or third-party, Section 391 of the
Code provides for a total indemnity of any person for P15,000. However, it does not
specifically provide that part of the indemnity will be paid for ambulance services which
contributes to the stigma that acquiring ambulance services are costly, aside from the
fact that many are unaware of the availability of such services.

In a report by the Metropolitan Manila Development Authority (MMDA), a total of
434 Filipinos died while 19,374 were wounded due to road crash incidents. This would
mean that 4 in every 100,000 Filipinos die while 193 people in every 100,000 are injured
in 2017. Road crash incidents increased by 703, having a total of 110,025 road crash
incidents, as compared to 109,322 incidents for 2016. The 2017 figure translates roughly
299 cases per day. Thus, having this in mind, it is appropriate to include the cost of
ambulance services in the indemnity provided for in Compulsory Motor Vehicle Liability
Insurances of motor vehicles to put an end or at least prevent the continuing rise of death
and/or injuries due to road crash incidents. f 7



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SEVENTEENTH CONGRESS OF THE)
REPUBLIC OF THE PHILIPPINES _)
Third Regular Session )

SENATE 18 AUG 15
S. No. 94 d

Introduced by Senator Richard J. Gordon

AN ACT AMENDING SECTIONS 386 AND 391 OF R.A. NO. 10607,
OTHERWISE KNOWN AS THE INSURANCE CODE, AS AMENDED.

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Section 386 of R.A. No. 10607 is hereby amended to read as

follows:

“Section 386. For purposes of this chapter:

(a) Motor Vehicle is any vehicle as defined in Section 3, paragraph (a) of
Republic Act No. 4136, otherwise known as the ‘Land Transportation and Traffic Code’;

(b) Passenger is any fare paying person being transported and conveyed in and
by a motor vehicle for transportation of passengers for compensation, including persons
expressly authorized by law or by the vehicle’s operator or his agents to ride without
fare;

(c) Third party is any person other than a passenger as defined in this section
and shall also exclude a member of the household, or a member of the family within
the second degree of consanguinity or affinity, of a motor vehicle owner or land
transportation operator, as likewise defined herein, or his employee in respect of death,
bodily injury, or damage to property arising out of and in the course of employment;

(d) Owner or motor vehicle owner means the actual legal owner of a motor
vehicle, in whose name such vehicle is duly registered with the Land Transportation
Office;

(e) Land transportation operator means the owner or owners of motor vehicles
for transportation of passengers for compensation, including school buses;

(f) Insurance policy or Policy refers to a contract of insurance against passenger
and third-party liability for death or bodily injuries and damage to property arising from
motor vehicle accidents;

(G) EMERGENCY MEDICAL SERVICES (EMS) REFERS TO A NETWORK
OF PRE-HOSPITAL OR _ PRE-HEALTH CARE FACILITY SERVICES

P41

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COORDINATED TO PROVIDE AID AND MEDICAL ASSISTANCE FROM THE
PLACE OF INCIDENT TO THE NEAREST APPROPRIATE HOSPITAL OR HEALTH
CARE FACILITY, DELIVERED BY AN EMS PERSONNEL;

(H) EMS PERSONNEL REFERS TO A PERSON TRAINED IN RENDERING
EMERGENCY MEDICAL SERVICES BY ANY ACCREDITED NONGOVERNMENTAL
ORGANIZATION, AUTHORIZED BY THE GOVERNMENT TO CONDUCT EMS
TRAINING, SUCH AS THE PHILIPPINE RED CROSS;

(1) AMBULANCE SERVICE REFERS TO FEES FROM EMS MEASURES
DELIVERED BY AN EMS PERSONNEL TO A PASSENGER AND/OR THIRD
PARTY, FROM THE PLACE OF INCIDENT TO THE NEAREST APPROPRIATE
HOSPITAL OR HEALTH CARE FACILITY. PROVIDED THAT, EMS SERVICES
SHALL BE RENDERED BY THE NEAREST APPROPRIATE HOSPITAL OR HEALTH
CARE FACILITY, AS THE CASE MAY BE, OR A DULY RECOGNIZED AND
ACCREDITED NONGOVERNMENTAL ORGANIZATION, AUTHORIZED TO
RENDER EMS SERVICES, AS DETERMINED BY THE SECRETARY OF HEALTH,
SUCH AS THE PHILIPPINE RED CROSS.”

Sec. 2. Section 391 of R.A. No. 10607 is hereby amended to read as follows:

“Section 391. Any claim for death or 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:

(a) The total indemnity in respect of any person, FOR DEATH OR BODILY
INJURIES AND DAMAGE TO PROPERTY ARISING FROM MOTOR VEHICLE
ACCIDENTS, shall not be less than [Fifteen thousand pesos (P15,000.00)] TWENTY
THOUSAND PESOS (P 20,000.00). PROVIDED THAT, IT SHALL INCLUDE
AMBULANCE SERVICES WHICH SHALL BE REMITTED BY THE INSURER
DIRECTLY TO THE EMS SERVICE;

(b) The following proofs of loss, when submitted under oath, shall be sufficient

evidence to substantiate the claim:

(1) Police report of accident; and

(2) Death certificate and evidence sufficient to establish the proper payee; or

(3) Medical report and evidence of medical or hospital disbursement in
respect of which refund is claimed;

(c) Claim may be made against one motor vehicle only. In the case of an
occupant of a vehicle, claim, shall lie against the insurer of the vehicle in which the
occupant is riding, mounting or dismounting from. In any other case, claim shall lie
against the insurer of the directly offending vehicle. In all cases, the right of the party



when

Car)

paying the claim to recover against the owner of the vehicle responsible for the
accident shall be maintained.”

Sec. 3. Repealing Clause. - All laws, decrees, orders, rules and regulations or
other issuances or parts thereof inconsistent with the provisions of this Act are hereby
repealed or modified accordingly.

Sec. 4. Separability Clause. — If any portion or provision of this Act is declared
unconstitutional, the remainder of this Act or any provision not affected thereby shall
remain in force and effect.

Sec. 5. Effectivity. — This Act shall take effect after fifteen (15) days following the
completion of its publication either in the Official Gazette or in a newspaper of general
circulation.

Approved,