MANILA, Philippines - The Insurance Commission (IC) is forming a task force to streamline provisions in the recently passed amendments to the 1974 Insurance Code.
President Aquino has signed into law Republic Act 10607, or the act strengthening the insurance industry, “further amending Presidential Decree (PD) 612, otherwise referred to as The Insurance Code.â€
The task force will be composed of representatives from the major trade or industry organizations such as the Philippine Life Insurance Association (PLIA) for the life insurance industry, Philippine Insurance and Reinsurers Association (PIRA) for the non-life or property and casualty (P/C) industry, as well as other sectoral groups representing mutual benefit associations (MBA), brokers, pre-need firms, actuarial/accounting, other professional firms, and the regulator.
IC commissioner Emmanuel L. Dooc explained that there is no need to come up with implementing rules and regulations (IRR) since the Code was not rescinded or abolished.
“Since it was merely amended or some provisions were revised or improved, the opinion was that department or commission circulars or orders would be sufficient,†Dooc said.
“The mission of the task force is to discuss specific provisions in the amendments that still need fleshing out, resulting in a number of circulars that will outline the new regulations under RA 10607,†he added.
For example, insurers and their agents renew their licenses annually. Under the amendments, licenses will be extended on a three-year period.
The new law also indicates that the minimum paid-up capital for new entrants is P1 billion, and a net worth of P250 million for existing players effective June 2013.
By 2016, the net worth would be P550 million. By 2022, it should be P1.3 billion.
The present arrangement is a P250-million minimum paid-up capital, reaching P1 billion by 2020.