‘Acts of God’ coverage in insurance eyed

THE immediate passage of a measure implementing a comprehensive insurance scheme that will cover the damage caused by natural disasters has been sought in the House of Representatives. Rep. Teodorico Haresco Jr. of Ang Kasangga party-list was referring to his House Bill 2672, which states that no comprehensive motor vehicle insurance policy will be issued and delivered in the Philippines unless it contains in substance the provision that comprehensive motor vehicle insurance shall cover all fortuitous events, such as floods, landslides, typhoon, volcanic eruptions, earthquakes and other related natural calamities.

Haresco noted that the passage of the bill would show that we have learned from the aftermath of Typhoons Ondoy and Pepeng last year which not only claimed hundreds of lives but also destroyed billions worth of public infrastructures and private properties, including about P1-billion worth of insurance claims for motor vehicle damages.

“Unfortunately, some insurance companies used the ‘Acts of God’ clause in the insurance policy to avoid payments to insured car owners, leaving comprehensive insurance plan holders helpless in amid the enormous losses. And this happened despite the fact that their motor vehicles are covered by comprehensive insurance policy,” Haresco pointed out.

“It’s clear that there is an urgent need to amend the Insurance Code of the Philippines to ensure that natural disasters or fortuitous events are clearly enumerated in the coverage of comprehensive motor vehicle insurance,” he added.

Haresco, however, conceded that inclusion of fortuitous events in the comprehensive motor vehicle insurance could be subject to additional fees as may be prescribed by the Insurance Commission. –LLANESCA T. PANTI, Manila Times