Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
Second Regular Session 
HOUSE BILL NO. 10497 
Introduced by Representative Wilbert T. Lee 
AN ACT PROVIDING COMPREHENSIVE AND RESPONSIVE INDEMNITIES 
UNDER COMPULSORY VEHICLE LIABILITY INSURANCE, AMENDING 
SECTIONS 390, 391, 397, and 398 OF THE INSURANCE CODE 
EXPLANATORY NOTE 
Vehicular accidents, together with liability and injuries arising therefrom, are 
everywhere. Road crash casualties are prevalent in Luzon, next in Mindanao, and last in 
Visayas.1 In 2016, the estimated number of serious injuries caused by road accidents was 
190,350 leading to a cost of $12,410,000.2 The Metropolitan Manila Development Authority 
(MMDA) reported 58,447 road accidents during 2021; 57,179 in 2022; and 44,493 in the first 
7 months of 2023.3 According to a study, road crash patients mostly involve drivers, 
pedestrians, and passengers with multiple injuries.4 As stated by the World Health Organization 
(WHO) Representative to the Philippines, “Road traffic injuries are a major yet often neglected 
public health issue”.  
A road crash accident entails injuries to the person and property. For this bill, the lens 
shall be focused on damage to persons.  The Philippine Road Safety Action Plan (PRSAP) 
provides that five pillars are the following: (1) Road safety management, (2) Safer road, (3) 
Safer vehicles, (4) Safer road users, and (5) Post-crash response. The fifth pillar includes 
ensuring that road crash victims receive appropriate, immediate, and subsequent medical care. 
This bill is in view that Compulsory Motor Vehicle Liability Insurance plays a crucial role in 
securing the fifth pillar of the PRSAP.  
1 Rappler, ‘IN NUMBERS: Road crash incidents in the Philippines’, 12 April 2017, available at 
https://www.rappler.com/newsbreak/in-depth/166151-road-crashes-philippines-awareness-safety/. 
2 World Bank Group, Road Safety Country Profile.  
3 Inquirer, ‘Metro Manila vehicle crashes averaging 156 daily’, 21 December 2022.  
4 Lu JL, Herbosa TJ, Lu SFD. Epidemiologic Profile of Vehicular Accident Patients in the Largest Hospital in the 
Philippines Covering Ten Years. Acta Med Philipp [Internet]. 2021Sep.22 [cited 2024Mar.6];55(6). Available 
from: https://actamedicaphilippina.upm.edu.ph/index.php/acta/article/view/3412. 
May 30, 2024
4:16 pm


Section 389 of the Insurance Code provides that no motor vehicle may be registered or 
renewed for registration without proving that it has acquired an insurance referred to as 
Compulsory Motor Vehicle Liability Insurance (CMVLI). The purpose of CMVLI is to provide 
compensation for death or bodily injuries suffered by third parties or passengers in a road crash 
accident caused by the operation of motor vehicles.  
CMVLI assures the dependents of immediate financial assistance regardless of the 
financial capacity of the motor vehicle owners.5 One of its features is immediate aid or benefit. 
Its accessibility only requires the filing of written notice within six (6) months from the date of 
the accident claim to the insurer with the nature, extent, and duration of the injuries as certified 
by a duly licensed physician.6 The insurance company shall make payment within five (5) days 
after reaching an agreement. Shall there be no agreement, the no-fault indemnity must be paid 
by the insurer. To claim for no-fault indemnity, the requirements are only the following: (1) 
Police report of the 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. There is no need to prove negligence in claiming the same. 7 The 
procedure for claiming indemnity for injury is easier because there is no need to go to court 
which requires more paperwork. This can also be filed by the driver himself for the claims of 
the third-party victims or the victims themselves.8 
The claims for CMVLI are limited to the indemnities provided under the insurance 
memorandum as provided by the insurance commissioner.9 The Insurance Memorandum 2024-
01 (IMC 2024-01) dated 07 February 2024 was issued which doubled the amount of death 
indemnity amounting to P200,000 and no-fault indemnity to P30,000.10 The purpose is to make 
it more responsive to the welfare and development needs of the individuals who are victims of 
vehicular incidents or mishaps. However, only the death and no-fault indemnity were raised, 
and the indemnity for bodily injuries and permanent disablement were not included. In view of 
that, CMVLI must be more responsive to the needs of road accident victims by providing 
updated indemnities for death, bodily injuries, and permanent disablement.  
The bill seeks to include more comprehensive benefits that will be responsive to the 
needs of road accident victims and means of payment by owners and/or operators to indemnify 
for such injuries and immediate action from the insurer. As discussed above, the indemnity for 
bodily injuries and permanent disablement has not been raised since 2006 despite the evident 
difference in the hospital and medical expenses from 2006 to 2024. To be more responsive, it 
must be able to keep up with the development and increase of medical expenses. In 
coordination with the Department of Health (DOH), and its expertise, the Insurance 
Commission will be able to formulate updated and more responsive benefits, especially for 
bodily injuries and permanent disablement.    
5 G.R. No. 203060, Malayan Insurance Company vs. Stronghold Insurance Company, Inc., June 28, 2021.  
6 RA 10607, Sec. 398.  
7 Republic Act No. 10607, Section 391.  
8 Shafer vs. RTC Judge of Olongapo City, Br. 75, November 14, 1988.  
9 RA 10607, Section 437.  
10 Philstar, ‘Insurance commission Oks doubling of vehicular accident indemnity claims’, 13 February 2024, 
available 
at 
https://www.philstar.com/headlines/2024/02/13/2332937/insurance-commission-oks-doubling-
vehicular-accident-indemnity-claims.  


The 1987 Constitution provides that the State shall promote social justice in all phases 
of national development.11 Social justice is defined as one founded on the recognition of the 
necessity of interdependence among diverse units of society and of the protection that should 
be equally and evenly extended to all groups with the view in mind of the paramount objective 
of the state of promoting the health and comfort of all persons.12 Victims and drivers or 
operators, regardless of social standing, deserve security from liability for injuries suffered in 
vehicular accidents. In addition, Section 10 of the 1987 Constitution provides that the State 
values the dignity of every human person and guarantees full respect for human rights.   
In general, CMVLI is a great tool for the government to secure responsive benefits for 
victims of road vehicle accidents and driver’s liability. Since CMVLI covers all the vehicles as 
it is required for registration and renewal, it means that if not all, but most of all road accidents 
will be covered. Moreover, the CMVLI serves as an opportunity to comply with the fifth pillar 
of the Philippine Safety Plan as it ensures that road crash victims receive appropriate, 
immediate, and subsequent medical care.  
In view of the foregoing, the approval of this bill is earnestly sought. 
 HON. WILBERT T. LEE 
  Representative 
AGRI PARTYLIST 
11 1987 Constitution, Article II, Section 10.  
12 Calalang vs. Williams, G.R. No. 47800, December 2, 1940. 


1 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
Second Regular Session 
HOUSE BILL NO. 10497 
Introduced by Representative Wilbert T. Lee 
AN ACT PROVIDING COMPREHENSIVE AND RESPONSIVE INDEMNITIES 
UNDER COMPULSORY VEHICLE LIABILITY INSURANCE, AMENDING 
SECTIONS 390, 391, 397, and 398 OF THE INSURANCE CODE 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
1 
Section. 1. Short Title. This Act shall be known as the “Comprehensive and Responsive 
2 
CMVLI Benefits Act” 
3 
Sec. 2. Declaration of Policy.  It is hereby declared to the policy of the State, in 
4 
accordance with the Constitution, that the State shall promote social justice in all phases of 
5 
national development,13 and the State values the dignity of every human person and guarantees 
6 
full respect for human rights.14  
7 
The State recognizes that Compulsory Motor Vehicle Liability Insurance (CMVLI) is 
8 
crucial in ensuring that the victims of vehicular accidents as well as drivers and/or operators 
9 
on the liability arising from injuries are secured by responsive and comprehensive benefits. 
10 
The coverage of CMVLI secures most, if not all, of the victims of vehicular accidents since it 
11 
is required for motor vehicle registration and renewal of registration. CMVLI guarantees and 
12 
13 1987 Constitution, Article II, Section 10. 
14 1987 Constitution, Article II, Section 11. 


2 
 
ensures that the owner and/or operators of motor vehicles have the means and resources to 
1 
indemnify the death or bodily injuries of the third party.15 It is hereby declared as a policy of 
2 
the State to provide responsive and comprehensive benefits and security for third-party victims 
3 
of vehicular accidents and an immediate and more efficient system of claiming.  
4 
 
5 
Sec. 3.  Section 390 of the Republic Act No. 10607, as amended, is hereby further read 
6 
as follows:  
7 
"Section 390. Every land transportation operator and every owner of a motor vehicle 
8 
shall, before applying for the registration or renewal of registration of any motor vehicle, at his 
9 
option, either secure an insurance policy or surety bond issued by any insurance company 
10 
authorized by the Commissioner or make a cash deposit in such amount as herein required as 
11 
limit of liability for purposes specified in Section 387. 
12 
"(a) In the case of a land transportation operator, the insurance guaranty in cash or 
13 
surety bond shall cover liability for death or bodily injuries of third-parties and/or passengers 
14 
arising out of the use of such vehicle in the amount not less than Twelve thousand pesos 
15 
(P12,000.00) per passenger or third-party and an amount, for each of such categories, in any 
16 
one accident of not less than that set forth in the following scale: 
17 
"(1) Motor vehicles with an authorized capacity of twenty-six (26) or more passengers: 
18 
Fifty thousand pesos (P50,000.00); 
19 
"(2) Motor vehicles with an authorized capacity of from twelve (12) to twenty-five (25) 
20 
passengers: Forty thousand pesos (P40,000.00); 
21 
"(3) Motor vehicles with an authorized capacity of from six (6) to eleven (11) 
22 
passengers: Thirty thousand pesos (P30,000.00); 
23 
"(4) Motor vehicles with an authorized capacity of five (5) or less passengers: Five 
24 
thousand pesos (P5,000.00) multiplied by the authorized capacity. 
25 
"Provided, however, That such cash deposit made to, or surety bond posted with, the 
26 
Commissioner shall be resorted to by him in cases of accidents the indemnities for which to 
27 
third-parties and/or passengers are not settled accordingly by the land transportation operator 
28 
and, in that event, the said cash deposit shall be replenished or such surety bond shall be 
29 
restored within sixty (60) days after impairment or expiry, as the case may be, by such land 
30 
transportation operator, otherwise, he shall secure the insurance policy required by this chapter. 
31 
                                                     
15 Insurance Memorandum Circular No., 2024-01. 


3 
 
The aforesaid cash deposit may be invested by the Commissioner in readily marketable 
1 
government bonds, and/or securities. 
2 
"(b) In the case of an owner of a motor vehicle, the insurance or guaranty in cash or 
3 
surety bond shall cover liability for death or injury to third-parties in an amount not less than 
4 
that set forth in the following scale in any one accident: 
5 
"(1) Private Cars 
6 
"(i) Bantam: Twenty thousand pesos (P20,000.00); 
7 
"(ii) Light: Twenty thousand pesos (P20,000.00); and 
8 
"(iii) Heavy: Thirty thousand pesos (P30,000.00). 
9 
"(2) Other Private Vehicles 
10 
"(i) Tricycles, motorcycles and scooters: Twelve thousand pesos (P12,000.00); 
11 
"(ii) Vehicles with an unladen weight of 2,600 kilos or less: Twenty thousand pesos 
12 
(P20,000.00); 
13 
"(iii) Vehicles with an unladen weight of between 2,601 kilos and 3,930 kilos: Thirty 
14 
thousand pesos (P30,000.00); and 
15 
"(iv) Vehicles with an unladen weight over 3,930 kilos: Fifty thousand pesos 
16 
(P50,000.00). 
17 
(c) For bodily injuries and fractures, the amount for the following items shall not 
18 
be less than what is provided in this section.  
19 
 
20 
1) 1,000 per day for hospital rooms. Provided, that the maximum for hospital 
21 
stay is 90 days.  
22 
2) Surgical Expenses: 15,000 for major operation; 10,000 for medium 
23 
operation; and 3,000 for minor operation.  
24 
3) Anesthesiologist’s Fees: 5,000 for major operation;  4,000 for medium 
25 
operation; and 1,000 for minor operation.  
26 
4) Operating Room: 3,000 for major operation; 2,000 for medium operation; 
27 
and 1,000 for minor operation.  
28 
5) Medical expenses such as, but not limited to, visits of the specialist or 
29 
practitioner, checkups, consultations, laboratory examination, fees, and x-
30 
rays. 400 per day for daily visits, and 10,000 for the total amount of 
31 
medical expenses.  
32 
6) 40,000 for drugs and medicines expenses used and prescribed by the 
33 
specialist or practitioner  
34 


4 
 
 
1 
(d) For permanent disablement, the amount for the following loss of or loss of use 
2 
shall not be less than what is provided in this section.  
3 
 
4 
1) 100,000 for two limbs.  
5 
2) 100,000 for both hands, or all fingers & both thumbs.  
6 
3) 100,000 for both feet.  
7 
4) 100,000 for one hand and one foot.  
8 
5) 100,000 for the sight of both eyes.  
9 
6) 100,000 for injuries resulting in being permanently bedridden.  
10 
7) 100,000 for any other injury causing permanent total disablement  
11 
8) 40,000 for arm at or above elbow.  
12 
9) 30,000 for arm between elbow and wrist.  
13 
10) 30,000 for a hand.  
14 
11) 30,000 for four fingers and thumb of one hand.  
15 
12) 24,000 for four fingers.  
16 
13) 40,000 for leg at or above knee.  
17 
14) 30,000 for leg below knee.  
18 
15) 30,000 for one foot.  
19 
16) 20,000 for all toes of one foot.  
20 
17) 16,000 for thumb.  
21 
18) 12,000 for index finger. 
22 
19) 40,000 for sight of one eye.  
23 
20) 60,000 for hearing of both ears.  
24 
21) 30,000 for hearing of one ear.  
25 
 
26 
(d) For death indemnity, burial and funeral expenses, the amount shall not be less 
27 
than 200,000.  
28 
 
29 
The Insurance Commission shall coordinate with the Department of Health to 
30 
conduct a yearly assessment of whether there is a need to provide higher indemnity to be 
31 
responsive to the needs of the victim, and operator or driver. The Commission shall 
32 
ensure that the indemnities are responsive and accurate to the actual costs for death, 
33 
bodily injuries, and permanent disablement in a vehicular accident. It shall cover most, 
34 


5 
 
if not all, of the cost of the aforementioned expenses. Provided, that the Insurance 
1 
Commission is not restricted to providing additional expenses not mentioned in this 
2 
Section.  
3 
"The Commissioner may, if warranted, set forth the schedule of indemnities for the 
4 
payment of claims for death, bodily injuries, or permanent disablement with the coverages 
5 
set forth herein. Provided, that the schedule of indemnities must not be lower than the 
6 
indemnities provided for the expenses for death, bodily injuries, and permanent 
7 
disablement enumerated in this Section. 
8 
 
9 
Sec. 4.  Section 391 of the Republic Act No. 10607, as amended, is hereby further read 
10 
as follows:  
11 
 
12 
"Section 391. Any claim for death or injury to any passenger or third-party pursuant to 
13 
the provisions of this chapter shall be paid without the necessity of proving fault or negligence 
14 
of any kind: Provided, That for purposes of this section: 
15 
"(a) The total indemnity in respect of any person shall not be less than Fifty 
16 
thousand pesos (P50,000); 
17 
"(b) The following proofs of loss, when submitted under oath, shall be sufficient 
18 
evidence to substantiate the claim: 
19 
"(1) Police report of accident; and 
20 
"(2) Death certificate and evidence sufficient to establish the proper payee; or 
21 
"(3) Medical report and evidence of medical or hospital disbursement in respect of 
22 
which refund is claimed; 
23 
"(c) Claim may be made against one motor vehicle only. In the case of an occupant of 
24 
a vehicle, claim, shall lie against the insurer of the vehicle in which the occupant is riding, 
25 
mounting or dismounting from. In any other case, claim shall lie against the insurer of the 
26 
directly offending vehicle. In all cases, the right of the party paying the claim to recover against 
27 
the owner of the vehicle responsible for the accident shall be maintained.” 
28 
 
29 
Sec. 5. Section 397 of the Republic Act No. 10607, as amended, is hereby further read 
30 
as follows: 
31 
“Section 397. Any person having any claim upon the policy issued pursuant to this 
32 
chapter shall, without any unnecessary delay, present to the insurance company concerned a 
33 
written notice of claim setting forth the nature, extent and duration of the injuries sustained as 
34 


6 
 
certified by a duly licensed physician. Notice of claim must be filed within six (6) months from 
1 
the date of accident, otherwise, the claim shall be deemed waived. Action or suit for recovery 
2 
of damage due to loss or injury must be brought, in proper cases, with the Commissioner or the 
3 
courts within one (1) year from receipt of the denial of the claim or failure to reach an 
4 
agreement within 10 days from filing of notice, otherwise, the claimant’s right of action shall 
5 
prescribe. Provided that, the prescription period of 1 year shall not commence without the 
6 
service of notice of denial or notice of no agreement to the one who filed the notice of 
7 
claim.  
8 
Sec. 6. Section 398 of the Republic Act No. 10607, as amended, is hereby further read 
9 
as follows: 
10 
 
11 
"Section 398. The insurance company concerned shall forthwith ascertain the truth and 
12 
extent of the claim within 10 days from the filing of the notice. The insurance company 
13 
shall make payment within five (5) working days after reaching an agreement within 10 days 
14 
from the filing of notice. If no agreement is reached, the insurance company shall pay only 
15 
the no-fault indemnity provided in Section 391 without prejudice to the claimant from pursuing 
16 
his claim further, in which case, he shall not be required or compelled by the insurance 
17 
company to execute any quit claim or document releasing it from liability under the policy of 
18 
insurance or surety bond issued.  
19 
"In case of any dispute in the enforcement of the provisions of any policy issued 
20 
pursuant to this chapter, the adjudication of such dispute shall be within the original and 
21 
exclusive jurisdiction of the Commissioner, subject to the limitations provided in Section 439. 
22 
Sec. 7. Non-Impairment Clause. - Nothing in this Act shall be construed as to diminish, 
23 
impair, or repeal rights recognized, granted, or made available to disadvantaged, marginalized, 
24 
or specific sectors under existing laws. 
25 
Sec. 8. Separability Clause. - If for any reason, any part or provision of this Act is 
26 
declared invalid or unconstitutional, the remaining parts or provisions not affected thereby shall 
27 
remain in full force and effect. 
28 
Sec. 9. Repealing Clause. - All laws, executive orders, presidential decrees, rules and 
29 
regulations or parts thereof contrary to or inconsistent with any provisions of this Act are 
30 
hereby repealed, amended, or modified accordingly. 
31 


7 
 
Sec. 10. Effectivity. - This Act shall take effect fifteen (15) days after its publication in 
1 
the Official Gazette or in two (2) national newspapers of general circulation. 
2 
Approved,  
3