IC commissioner Evangeline Crisostomo-Escobillo stressed the importance of providing adequate protection to the insuring public. CMVLI coverages are required before anyone can register any motor vehicle in the country.
At the same time, the premium rates across all vehicle classifications remains the same for both one-year and three-year CMVLI coverages without prejudice to the insurers due to the low loss experience of the insurers.
"Considering the inflationary factor, the current limits are grossly inadequate to compensate anyone in case of motor vehicle accidents. We have to be realistic. We have to raise the limits to a level where we can achieve what the Insurance Code intended and where traffic accident victims shall be provided with financial relief," Escobillo said before members of the Philippine Insurers and Reinsurers Association (PIRA) recently.
Data from the commission’s Research and Statistics Division show that on a per-dollar basis, the liability limit of P100,000 would still be the lowest among Asian economies.
Likewise, the increased limit pales in comparison to the maximum amount of compulsory coverage for marine passengers required by the Maritime Industry Authority (Marina) presently at P200,000 per passenger. Marina is the regulatory government agency for the country’s maritime industry, and it is under the wings of the Department of Transportation and Communications (DOTC).
Insurance officials said that the target is to eventually equal at least the same benchmark.
Under the final draft of the proposed insurance memorandum circular, the no-fault indemnity, which is the amount of claim for death or bodily injuries sustained by a passenger or third party that is paid without the necessity of proving fault or negligence, will also be increased to P15,000 and P50,000 for private motor vehicles and public utility vehicles respectively.
The CMVLI coverage of P100,000 will be composed of death indemnity of P70,000 and burial and funeral expenses of P30,000.
For bodily injuries and fractures, the maximum amounts for reimbursable fees or charges is increased according to types of accommodation or professional attendance extended (hospital rooms, surgical expenses, anesthesiologist fees, operating room, medical expenses, drugs and medicine, and ambulance).
The liability limits for permanent disablements will likewise be increased from P25,000 to P50,000 for loss of or loss of use of two limbs, injuries resulting in being permanently bed-ridden, and any other injury causing permanent disability. – TPT