MANILA, Philippines - Insurance claims from the damages on real estate properties and motor vehicles caused by tropical storm Ondoy and typhoon Pepeng could reach at least P15 billion, Insurance Commission chief Eduardo Malinis said yesterday.
Malinis told reporters yesterday that the amount of damages on real estate properties was already estimated at P12 billion but could still balloon to P14 billion while the amount of losses from flood damaged vehicles was initially placed at P1 billion.
Malinis added that non-life insurance companies have yet to make a final assessment on the number of damaged vehicles that could be covered by insurance claims.
He pointed out that less than 30 percent of the number of insured motor vehicles was covered by insurance with ‘Acts of God’ provision.
Standard Insurance Co., the leading provider of motor vehicle insurance, offered to shoulder the repair of 350 vehicles damaged by the recent calamities for free valued at about P70 million without an “Acts of God” coverage.
The 87-member Philippine Insurers and Reinsurers Association (PIRA) earlier said only 25 percent of all insured motor vehicles in the Philippines have “Acts of God” coverage.
In Metro Manila, only 10 percent or 30,000 of the 300,000 motor vehicles are covered by “Acts of God” coverage.
President Arroyo has asked Justice Secretary Agnes Devanadera to head a task force that would fast-track the insurance claims by victims to the typhoons.
The Department of Justice (DOJ) warned that it would file criminal charges against erring insurance companies that would not settle claims within the 30-day period set by law.
Under the existing Insurance Code, insurance providers have 30 days to pay the claimants upon the submission of proof of loss. After the 30-day period, the company is liable to pay interest for the delay.
Malinis said he made an assurance President Arroyo that insurance companies have the resources to pay all the claims of the victims of the recent calamities.
“I assured the President that the industry can pay all the claims,” Malinis said.
Data showed that the combined net assets of non-life insurance providers stood at P41.5 billion as of end-2008.
Industry players said the insurance claims from the recent calamities was the second largest after the eruption of Mt. Pinatubo way back in 1990.