IC INSURANCE MEMORANDUM CIRCULAR NO. 4-2006, July 26, 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 Or Professional Attendance Extended

Services Rendered

Maximum Reimbursable Fees and/or Charges

1. Hospital Rooms

Maximum of 45 days per accident P 500.00/day

Laboratory Examination, fees, x-rays 2,000.00

2. Surgical Expenses

Major Operation 7,500.00

Medium Operation 5,000.00

Minor Operation 1,500.00

3. 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 Practitioner or specialists 400.00/day

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 medicines used but not to exceed 20,000.00

7. Ambulance

Actual amount charged for ambulance transport but not to exceed 1,500.00

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 bedridden

50,000.00

Any other injury causing permanent total disablement

50,000.00

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

15,000.00

III. 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 PREMIUM DST 12.50% EVAT 12.00% LGT 0.75% TOTAL 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

590.82

73.85

70.90

4.43

740.00

5. Taxi, PUJ and Mini Bus

878.24

109.78

105.39

6.59

1,100.00

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