GMA wants quick loan processing

MANILA, Philippines - President Arroyo yesterday ordered the Insurance Commission (IC) and the Department of Justice (DOJ) to crack the whip on insurance firms to make sure they immediately process and approve the claims of typhoon victims.

In a closed-door meeting at the Study Room of the Palace, she directed Justice Secretary Agnes Devanadera to form a task force that will file cases against insurance firms found delaying or withholding claims.

Devanadera said the DOJ has opened an action center for complaints but clarified that the agency will not process or release claims.

She said complainants should first try to exhaust all means to make their claims with the help of the insurance commission.

“As much as possible, we don’t want to put people in jail, but what is important to us is that people who got insurance coverage are paid,” Devanadera said in a news briefing.

Insurance Commissioner Eduardo Malinis said he has already met with the representatives of all insurance companies and asked them to speed up the processing of claims.

“They (insurance companies) assured that they will do the best they can to hasten the processing of claims,” Malinis said.

He said property damage claims could reach P11 billion, while motor vehicle claims could reach P1 billion.

Malinis said the industry would not collapse even with numerous claims. The insurance firms, even the small ones, have assured him that “they can handle all the claims.”

There are about 34 non-life insurance firms in the country, each with a paid-up capital of P100 million.

Under Insurance Code, non-life insurance companies are given 30 days to settle claims from the time a policyholder submits a “proof of loss.”

Violations of the insurance law are punishable by fines or six-month imprisonment or both.

Malinis said policyholders can also direct their claims to the Insurance Commission, which will forward them to the concerned insurance firms. In this way, the agency can monitor the processing of the claims.