Standard bats for AOG inclusion

MANILA, Philippines - Standard Insurance Inc. believes that local insurance companies should carry the “Acts Of God” (AOG) clause in the comprehensive auto insurance policy.

Standard Insurance chairman and chief executive officer Ernesto Echauz said that damaged or destroyed vehicles without the AOG cover and acquired through a bank loan, will just abandon the automobile. “The bank is left with a defaulted client, and in most cases an un-repairable vehicle,” Echauz said in a press statement.

Senate minority leader Aquilino Pimentel Jr. in the same statement slammed the deceptive policy of some insurance companies not to indemnify owners of motor vehicles destroyed by the typhoons.

Pimentel hit the firms for deliberately resorting to the AOG clause to avoid payments leaving car owners by comprehensive insurance plans helpless.