Bill requires auto insurers to include 'acts of God'

MANILA, Philippines - A party-list lawmaker has filed a bill requiring comprehensive insurance policies for motor vehicles to cover damage from natural calamities like typhoons, floods, landslides, volcanic eruptions and earthquakes.

In filing House Bill 2672, Kasangga party-list Rep. Teodorico Haresco said after typhoons and other catastrophes, insurance claims have been filed by disaster victims for damage to property, including motor vehicles.

However, many insurance companies have used the “acts of God” clause in insurance policies to avoid payments to insured car owners, “leaving comprehensive insurance plan holders helpless in the midst of enormous economic losses, despite the fact that their motor vehicles are covered by comprehensive insurance policy,” Haresco said.

He proposed an amendment to the Insurance Code (Presidential Decree 1460, as amended by PD 1456) providing that all comprehensive motor vehicle insurance should cover all fortuitous events, such as floods, landslides, typhoons, volcanic eruptions and earthquakes.

He said the comprehensive insurance policy should cover all damage directly or indirectly, proximately or remotely occasioned by, contributed by, traceable to, arising out or in connection with natural catastrophes. 

The insurance issuer may impose additional fees for such a service, as may be prescribed by the Insurance Commission.

In his explanatory note, Haresco cited records of the National Insurance Commission and the Philippine Insurers and Reinsurance Association that about P11 billion in property claims, and another P1 billion in car damage claims, have been filed due to typhoons, floods and other natural disasters.