SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session 
SENAJl'..,. 
S. No. 
~lSOO 
) 
) 
) 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
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'15 
JUN -4 P 2 :49 
FURTHER AMENDING SECTION 391 OF PRESIDENTIAL DECREE NO. 612, 
OTHERWISE KNOWN AS THE "INSURANCE CODE", AS AMENDED BY 
REPUBLIC ACT NO. 10607 
EXPLANATORY NOTE 
The current version of our Insurance Code, Chapter 6, provides for Compulsory 
Motor Vehicle Liability Insurance. l What this chapter provides are rules to the effect that 
it is unlawful to operate any motor vehicle in a public highway unless there is a policy of 
insurance in force to indemnify the death, bodily injury, and/or damage to property of a 
third-party or passenger, arising from the use of the vehicle. 
This chapter contains a provision known as the "no-fault clause,,2 which provides, 
among other things, that in the event of death or injury, arising from a motor vehicle 
mishap, insurance companies are mandated by law to pay for the damage even if there 
was no finding of fault or negligence on either side. The provision reads: 
SEC. 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 shall not 
be less than Fifteen thousand pesos (,1"15,000.00); 
I Republic Act No. 10607, Chapter 6, "Compulsory Motor Vehicle Liability Insurance". 
2 Republic Act No. 10607, Chapter 6, Art. 391. 
1 


(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 III respect of which refund is 
claimed; 
The purpose of this provision is to provide a mechanism for immediate relief to 
victims of motor vehicle mishaps, especially where it cannot be established that either 
party was at fault. 
The problem with this provlSlon lies in subparagraph (a). This provision 
effectively creates a minimum amount of P15,OOO to be paid by insurance companies, 
even if there was no finding of fault or negligence. While P15,OOO is a reasonable 
amount, the words 'not less than' preceding it means that in theory, an insurance 
company may be made to pay P150,OOO, or even P15,OOO,OOO, even if there was no 
finding of fault or negligence. Under the law, a passenger who sustained a minor cut in a 
minor vehicle mishap could demand at least P15,OOO, without limit, from his insurance 
company. What makes matters worse is that under subparagraph (b), there is a minimal 
amount of evidence required to substantiate a claim that under the law, has no monetary 
ceiling. 
This Bill seeks to rectify this situation. 
2 
~\., 4~~ ,O.~ 
MIRIAM DEF,~SOR sJ\NTrJ(do 
11' 


SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session 
SENATE 
S.No. 
2800 
) 
) 
) 
Introduced by Senator Miriam Defensor Santiago 
'15 
JUN -4 P2:49 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
1 
AN ACT 
2 
FURTHER AMENDING SECTION 391 OF PRESIDENTIAL DECREE NO. 612, 
3 
OTHERWISE KNOWN AS THE "INSURANCE CODE", AS AMENDED BY 
4 
REPUBLIC ACT NO. 10607 
5 
SECTION 1. Section 391 of Presidential Decree No. 612, otherwise known as the 
6 
"Insurance Code", as amended by Republic Act No. 10607, is hereby amended to read as 
7 
follows: 
8 
SEC. 391. Any claim for death or injury to any passenger or third-
9 
party pursuant to the provisions of this chapter shall be paid without the 
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necessity of proving fault or negligence of any kind: Provided, That for 
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purposes ofthis section: 
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(a) The total indemnity in respect of any person SHALL 
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NOT BE MORE [less] THAN Fifteen thousand pesos 
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(J>15,000.00); 
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(b) The following proofs of loss, when submitted under 
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oath, shall be sufficient evidence to substantiate the claim: 
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(1) Police report of accident; and 
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(2) Death certificate and evidence sufficient to 
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establish the proper payee; or 


1 
(3) Medical report and evidence of medical or 
2 
hospital disbursement in respect of which refund is 
3 
claimed; 
4 
(c) Claim may be made against one motor vehicle only. In 
5 
the case of an occupant of a vehicle, claim, shall lie against the 
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insurer of the vehicle in which the occupant is riding, mounting 
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or dismounting from. In any other case, claim shall lie against the 
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insurer of the directly offending vehicle. In all cases, the right of 
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the party paying the claim to recover against the owner of the 
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vehicle responsible for the accident shall be maintained. 
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SECTION 2. Repealing Clause. -
Any law, presidential decree or issuance, 
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executive order, letter of instruction, administrative order, rule or regulation contrary to 
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or is inconsistent with the provision of this Act is hereby repealed, modified, or amended 
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accordingly. 
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SECTION 3. Effectivity Clause. - This Act shall take effect fifteen (I5) days after 
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its publication in at least two (2) newspapers of general circulation. 
Approved, 
(aml19MayZ015 
2