Driver liability insurance

If Helen of Troy was the face that launched a thousand ships, I dare say that Patty Echauz–Chilip, CEO of Standard Insurance Co. has the face and the smarts that inspires friends and professionals to think, consider, debate and work out ideas and solutions that improves business, All this, while playing host to members of motoring media.

Last week, I was invited by race and event organizer Jeanette Ipapo Tuason to join a media engagement party hosted by Standard Insurance Co. the country’s only All-Filipino Insurance firm and leader in motorcar insurance. My good fortune was to be seated directly in front of Patty and her semi-retired father Rene who may have turned over management to his children but still remained passionate about the business and the industry.

In between plates of great food and a great company of motoring journalists, I got so many updates and information about the insurance industry particularly with regards to motor vehicle insurance. At one point, we were presented with an actual demonstration of Standard Insurance’s online insurance quotation. This was quite interesting since I have to call my present provider first and they normally take 24 hours to get back to me with a quotation concerning cost of coverage.

Standard’s online system takes roughly two minutes from the time you enter all the necessary data covering basic information regarding your car such as make, model, year, mileage, type of use (commercial/private) etc., then you enter information concerning driving history, driving offenses, accidents etc. Once you’ve input all the data, you immediately get a quotation down to the last centavo. Aside from the speed of available information, the data allows you to shop around or compare without having to interact or feel obligated to a “person” who has given you a quotation.

As the evening carried on, I found myself in a passionate discussion with Rene Echauz and the group concerning the fact that many car owners with vehicles older than five or ten years can no longer insure their vehicles because insurers simply won’t touch them. Patty and her Dad proudly informed me that they have actually done something about the problem and have provided coverage for cars that were up to 12 years old. Although the company goes through the prospective client with a fine-toothed comb, the fact is, Standard Insurance Co. is the only company bold enough to stretch the line. If you happen to have one of those collectible classic cars, Standard Insurance also has a unique plan for such vehicles that are rarely driven but are so expensive and requires some form of insurance coverage.

From there, our discussion eventually progressed or heated up to what I generally refer to as accident coverage. While all vehicles are required to have TPL or Third Party Liability, this does not meet the concern of causing injury to others or damage to property in today’s current economy and price range. I’m particularly sensitive to the matter, being married to a “foreigner.” In a country where a foreigner in an accident becomes the equivalent of an ATM with two legs, I have always opted for good insurance coverage. But all of that came to an end when our cars became too old to be covered by insurance companies.

So here I am batting for the development and legislation that would create or require “Driver Liability Coverage” for ALL DRIVERS. My idea is a product that gives “Multiple solutions” for “Multiple benefits.” The Driver Liability Coverage should first be above all, an accident insurance policy that will cover all medical expenses related to treatment and/or hospitalization of the driver. It is bad thing to know that many of us insure our cars but we don’t insure ourselves for vehicular accidents and injury. We have taken this for granted for too long and we need to change this.

On a more practical note, the insurance coverage makes sure that no one suffers financial disaster from hospital bills or funeral expenses, employees are not at the mercy of employers, employers don’t lose an arm and a leg paying for an employee’s hospital bill or lose his or her soul for abdicating on their moral responsibility.

The liability coverage will also provide coverage for injury to others and damage to property. This way, we can minimize the number of “hit and runs” or drivers fleeing the scene of the accident because they can’t afford the cost and consequences. A number of people I know—particularly expats and missionaries—find themselves assigned with old model vehicles. They are not concerned with “own damage” claims but are very concerned with damage to other cars and especially injury to other persons. The TPL offers very little in terms of compensation and does not provide protection for demands such as compensation for “days lost from work” etc.

The mandatory nature and span of coverage will undoubtedly come at a price but that “price” will give emphasis on every driver’s responsibility and liability. The only time people really pay attention is when it begins to affect their wallets. As an incentive, the program could feature a reduced cost or discount if the driver has formal training, continuing education or a long and clean history as a driver. From what I’m told, the LTO now requires a trained professional driver to teach a student driver. Insurance companies can then require that all drivers enroll in driving schools and that in turn will force government to make sure that all driving schools undergo rigid supervision and evaluation.

Another benefit from the “Driver’s Liability Coverage” idea is that it can establish a system of penalties as well as discounts for drivers for every year of having no accidents or claims, such a product or program would incentivize and emphasize the importance of defensive driving.

This system will also weed out bad or dangerous drivers once they rack up too many penalties and can no longer be covered. In addition the program will force government agencies to integrate their computer and data recording system but will also give them an income opportunity every time an insurance company requests for a driver’s history.

To be honest, I’m sure that such a proposal would prove too controversial especially with an “election year” coming up. So if our innovative friends at Standard Insurance Co. want to give it a try, they could try it out with a test market of people who have a need for the product, see it’s benefits and are willing to pay for “Driver’s Liability Coverage” that insures the driver and not just the car!

Remember, this is what Sir Richard Branson of the Virgin brand has always pegged his ventures on. When you hear of consumer discontent, a need that is left unanswered, and when you know you can come up with something better, then you know there is a business opportunity and a service to the community.