IC to hike motor vehicle insurance premium

MANILA, Philippines — The government is planning to increase the insurance premium of select vehicles while also doubling indemnity claims of vehicular accident victims as part of efforts to improve overall coverage in the country.

In a notice, the Insurance Commission (IC) released the draft on the revised compulsory motor vehicle liability insurance (CMVLI) covering updated premiums and benefit coverage.

The CMVLI is the most basic kind of motor vehicle insurance among non-life firms, which pays for the expenses for the death or injuries suffered by passengers of an insured vehicle.

IC commissioner Reynaldo Regalado said the revisions aim to improve coverage for victims of road traffic accidents and align with the national policy of ensuring accessible and adequate financial protection.

He said the main purpose of the CMVLI is to ensure that the owners and operators of motor vehicles have the means and resources to indemnify the death or injuries of passengers.

As such, the premium rates for one-year and three-year CMVLI on certain vehicles have been increased.

The total premium for taxis, public utility jeepneys and minibuses will be hiked by 53 percent to P1,686.40 from P1,100 previously.

Total premium covers the basic premium, documentary stamp tax, value-added tax and local government tax.

Tourist cars will also see a 53-percent jump to P1,134.49 in total premium from the current P740.

Public utility buses and tourist buses, meanwhile, will increase by 13 percent to P1,632.27 from P1,450.

On the other hand, total premium for motorcycles, trailers and tricycles (P250), private cars (P560), light and medium commercial vehicles (P610) and heavy commercial vehicles (P1,200) will remain the same.

As premiums increase, the IC is also moving to increase the limit for third party liability for all CMVLI coverage at P400,000 each for all types of motor vehicles. This is double the current benefit at P200,000.

Similarly, the death indemnity including burial and funeral expenses will be at P400,000. As of now, this is at P200,000.

The IC emphasized that there is need to continually improve and increase the benefits and insurance coverages under the CMVLI policy to make it more responsive to the welfare and development needs of the individuals who are victims of any vehicular incidents or mishaps.

The benefits payable in respect to permanent disablement were also increased to a range of P24,000 to P200,000 depending on the body part. Currently, benefits only range from P6,000 to P50,000.

For bodily injuries, the maximum reimbursable fees of charges for various professional needs were also jacked up such as hospital and operating rooms, surgical and medical expenses, anaesthesiologist’s fees, drugs and medicines and ambulances.