Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. 
HORIBATA AND HON. NICOLAS ENCISO VIII 
EXPLANATORY NOTE 
Every vehicle owner is required by law to secure a Compulsory Third Party Liability 
(CPTL). This is a mandatory requirement in order to indemnify any injured passengers 
or a third party from mishap without proving negligence. 
As stated in Section 378 of the Insurance Code of the Philippines, 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 which the total indemnity in respect of any person 
shall not exceed five thousand pesos (P 5,000.00). Nevertheless, the claim must be 
accompanied by a medical certificate, police report, death certificate and receipts. 
However, for the past years, the no-fault indemnity remains unchanged and 
considered insufficient to finance all the hospitalization and expenses for the damage 
done.  The inadequacy considered as proof that the compensation for any injury is 
slow, low and not enough. 
This bill seeks to increase from five thousand pesos (P 5,000.00) to fifty thousand 
pesos (P 50,000.00) the total indemnity claim for death or injury to any passenger or 
third party without the necessity of proving fault or negligence.  
This bill also lessens the stress and frustration of people especially the low and 
marginalized who are not only hospitalized but confronted with the delay of payment 
by the Insurance company. 
In the light of the foregoing premises, the passage of this bill is earnestly sought. 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
 MIGUEL LUIS R. VILLAFUERTE  
TSUYOSHI ANTHONY G. HORIBATA 
NICOLAS ENCISO VIII 
July 11, 2022
5:21 pm
1797


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. 
HORIBATA AND HON. NICOLAS ENCISO VIII 
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 OF 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. 
“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;” 
SECTION 2.  Payment claims for physical injuries are not serious, as defined under 
the Revised Penal Code, of any passenger or third party pursuant to the provision of 
this Chapter without necessity of proving fault or negligence of any kind shall be 
maintained at Five Thousand Pesos (Php 5,000.00). 
SECTION 3. This Act shall take effect fifteen (15) days after its publication in at least 
two (2) newspapers of general circulation. 
Approved, 
1797