MANILA, Philippines - An insurance executive expressed support for proposals to cover in the comprehensive insurance policy, the so-called “Acts of God” (AOG) on motor vehicle insurance policies damaged by floods and other calamities.
Standard Insurance Inc. chairman and chief executive officer Ernesto “Judes” Echauz claims that in other countries comprehensive insurance include all contingencies and no reference to AOG as exceptions.
Demand for motor vehicle AOG cover rose as a result of recent calamities that ruined many vehicles of owners who did not purchase a separate policy for the purpose.
The Insurance Association of the Philippines (IAP) reported that auto insurance claims reached to P1 billion caused by typhoon “Ondoy” alone. The association said 8,000 vehicles are covered by insurance claims.
Senate minority leader Aquilino Pimentel Jr. slammed the deceptive policy of several insurance companies not to indemnify owners of motor vehicles destroyed by the typhoons.
Pimentel hit the insurance firms for deliberately resorting to the AOG clause to avoid payments leaving car owners by comprehensive insurance plans helpless.
Echauz said insurance companies must now address how to make the AOG cover available to all motor clients nationwide at both reasonable and affordable rates.
The insurance boss said they support the plan of AIP to offer the service at a premium rate of 0.5 percent even though the 42-year old Tariff Code for insurers sets the rate at a higher one percent.
The CEO assured clients of their company of speedy settlement of claims due to floods. “We utilized our own technical group, composed of trained mechanics and engineers— who coordinated the towing and repairs of the vehicles with automotive dealers,” he said in a statement.
The law mandates that a claim should be settled 30 days from the filing of a proof of loss, which includes a police report of a picture of the flooded car.