IC Insurance Memorandum Circular No. 4-2006 (2007)

(NAR) VOL. 18 NO. 1/JANUARY - MARCH 2007

[ IC INSURANCE MEMORANDUM CIRCULAR NO. 4-2006, July 26, 2007 ]

COMPULSORY MOTOR VEHICLE LIABILITY INSURANCE

(CMVLI) COVERAGE In the interest of the public and pursuant to the authority vested in me by the provisions of Section 414 in relation to Chapter VI of the Insurance Code of 1978, the Limits of Liability, Schedule of Indemnities for Bodily Injury and/or Death, and Premium Rates prescribed under Insurance Memorandum Circular No. 1-96 dated November 4, 1996 are hereby revised as follows:

I. LIMITS OF LIABILITY

The limits for third party liability for all CMVLI coverage shall be One Hundred Thousand Pesos (P100,000.00) each for all types of motor vehicles with an additional One Hundred Thousand Pesos (P100,000.00) for passenger liability if the motor vehicle is used as a public utility vehicle.

II. SCHEDULE OF INDEMNITIES FOR BODILY INJURY AND/OR DEATH

The following Schedule of Indemnities shall be observed in the settlement of claims for death, bodily injuries, professional fees and hospital charges for services rendered to traffic accident victims under the CMVLI policy.

A) DEATH INDEMNITY P70,000.00 Burial and Funeral Expenses 30,000.00 B) BODILY INJURIES AND FRACTURES Types of Accommodation Maximum Or Professional Reimbursable Attendance Fees and/or Extended Services Rendered Charges 1. Hospital Rooms Maximum of 45 days per P 500.00/day accident Laboratory Examination, fees, x-rays 2,000.00 2. Surgical Expenses Major Operation 7,500.00 Medium Operation 5,000.00 Minor Operation 1,500.003. Anaesthesiologist’s Major Operation 2,500.00 Fees Medium Operation 2,000.00 Minor Operation 500.00 4. Operating Room Major Operation 1,500.00 Medium Operation 1,000.00 Minor Operation 500.00 5. Medical Expenses For daily visits of 400.00/day Practitioner or specialists The total amount of medical expenses must not exceed 5,000.00 (For a single period and confinement) 6. Drugs & Medicines Actual value of drugs and 20,000.00 medicines used but not to exceed 7. Ambulance Actual amount charged for 1,500.00 ambulance transport but not to exceed PERMANENT DISABLEMENT AMOUNT Loss of or Loss of Use of: Two Limbs P50,000.00 Both Hands, or All Fingers and Both Thumbs 50,000.00 Both Feet 50,000.00 One Hand and One Foot 50,000.00 Sight of Both Eyes 50,000.00 Injuries Resulting in being permanently 50,000.00 bedridden Any other injury causing permanent total 50,000.00 disablement Arm at or above elbow 20,000.00 Arm between elbow and wrist 15,000.00 Hand 15,000.00 Four Fingers and Thumb of One Hand 15,000.00 Four Fingers 12,000.00 Leg at or above knee 20,000.00 Leg below knee 15,000.00 One Foot 15,000.00 All Toes of one foot 10,000.00 Thumb 8,000.00 Index Finger 6,000.00 Sight of One Eye 20,000.00 Hearing - Both Ears 30,000.00 Hearing - One Ear 15,000.00III. NO FAULT INDEMNITY Any claim for death or bodily injuries sustained by a passenger or third party shall be paid without the necessity of proving fault or negligence of any kind provided the total indemnity in respect of any person shall be fifteen thousand pesos (Php 15,000.00) for all motor vehicles.

IV. Set forth hereunder are the respective rates of premium for one-year and three year CMVLI coverage.

VEHICLE CLASSIFICATION BASIC DST EVAT LGT TOTAL PREMIUM12.50% 12.00% 0.75% PREMIUM

For One- Year CMVLI Coverage 1. Private Cars (including jeeps & Utility Vehicles) 447. 11 55.89 53.65 3.35 560.00 2. Light/Medium Trucks (Own Goods) Not Over 3,930 kgs. 487.03 60.88 58.44 3.65 610.00 3. Heavy Trucks (Own Goods) and Private Buses over 3,930 kgs. 958.08 119.76 114.97 7.1 9 1,200.00 4. AC and Tourists Cars 70.90 590.82 73.85 4.43 740.00 5. Taxi, PUJ and Mini Bus 878.24 1,100.00 109.78 105.39 6.59 6. PUB and Tourists Bus 1,157.69 144.71 138.92 8.68 1,450.00 7. Motorcycles/ Tricycles/ Trailers 199.60 24.95 23.95 1.50 250.00 For Three-Year CMVLI Coverage 1. Private Cars (including jeeps & Utility Vehicles) 1,285.43 162.67 154.25 9.64 1,610.00 2. Light/Medium Trucks (Own Goods) Not Over 3,930 kgs. 1,397.21 162.67 167.67 10.48 1,750.00 3. Heavy Trucks (Own Goods) and Private Buses Over 3,930 kgs. 2,746.51 162.67 329.58 20.60 3,440.00 4. AC and Tourists Cars 1,692.61 162.67 203.11 12.69 2,120.00 5. Taxi, PUJ and Mini Bus 2,514.97 162.67 301.80 18.86 3,150.00 6. PUB and Tourists Bus 3,313.37 162.67 397.60 24.85 4,150.00 7. Motorcycles/ Tricycles/ Trailers 574.85 162.67 68.98 4.31 720.00 This Circular shall apply to all CMVLI policies that shall be issued on or after January 1, 2007.Adopted: 26 July 2007

(SGD.) EVANGELINE CRISOSTOMO-ESCOBILLO Insurance Commissioner

Approved:

(SGD.) MARGARITO B. TEVES Secretary Department of Finance