THE INSURANCE COMMISSION (IC) said it is considering increasing basic premiums for Compulsory Motor Vehicle Liability Insurance (CMVLI) in certain types of vehicles.
“In consonance with the President’s commitment to improve coverage for victims of road traffic incidents, increasing the Compulsory Motor Vehicle Liability Insurance benefits aligns with the national policy of ensuring accessible and adequate financial protection,” the regulator said in a draft circular dated June 27.
The basic premiums were set in 2006 and remained unchanged since.
The draft sets the limit for third-party liability for all CMVLI coverage at P400,000.
The draft also quadruples the benefits payable per loss resulting from any one incident as well as the maximum reimbursable fees for each service or accommodation.
The draft proposes basic premium hikes of AC and tourist cars to P905.79 for one-year CMVLI coverage from P590.82 previously, and to P2,594.94 for three-year coverage, from P1,692.61.
The basic premium for Taxis, Public Utility Jeepneys, and Minibuses increases to P1,346.3 for one-year coverage from P878.24 previously. It was raised to P3,855.70 from P2,514.97 for three-year coverage.
The draft proposes basic premiums for public utility buses and tourist buses of P1,303.21 per year, from P1,157.69 previously, and to P3,729.86 from P3,313.37 for three-year coverage.
Premiums are calculated by adding 12.5% documentary stamp tax, 12% expanded value-added tax, and 0.75% local government tax to the basic premium.
The proposed schedule of benefits and premium rates for each vehicle classification was submitted by the Philippine Insurers and Reinsurers Association, Inc. for review by the IC.
“The purpose of the CMVLI is to guarantee and ensure that the owners and/or operators of motor vehicles have the means and resources to indemnify, as far as applicable, the death and/or bodily injury of third parties or passengers arising from the operation of their motor vehicles,” the IC said. — Aaron Michael C. Sy
