Philippines doubles third-party liability insurance coverage

The insurer will also cover other incidental expenses not included in bodily injury or death indemnities.

The Insurance Commission (IC) of the Philippines has implemented significant enhancements to compulsory motor vehicle liability insurance (CMVLI), doubling the benefits for third parties. 

The limit for third-party liability has doubled (100%) to $3,597 (P200,000). Similarly, death indemnity, including burial and funeral expenses, has risen to $3,597 (P200,000) from $1,259 (P70,000), with burial and funeral expenses now also covered up to $540 (P30,000).

Additionally, no-fault indemnity has doubled to $540 (P30,000) for any claim of death or bodily injury sustained by a passenger without the need to prove fault or negligence. 

The insurer will also cover other incidental expenses not included in bodily injury or death indemnities, up to a maximum of $180 (P10,000).

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Despite these increases, there will be no changes to the premiums for CMVLI, as the rates prescribed under the previous circular (IMC 4-2006) remain in effect. 

However, premium adjustments resulting from the enhanced indemnities will be subject to further study.

CMVLI is a mandatory requirement for motor vehicle registration, aiming to ensure that vehicle owners or operators can compensate third parties or passengers for accidents resulting in death or bodily injury. 

These updates reflect the Commission's commitment to enhancing insurance coverage and protection for all stakeholders involved in motor vehicle incidents.

($1.00 = P55.62)