House Bill Proposed to Increase Third-Party Liability Claim Limit for Commercial Vehicles

House Bill Proposed to Increase Third-Party Liability Claim Limit for Commercial Vehicles

In a notable move to enhance financial protection for individuals involved in motor vehicle accidents, the Insurance Commission has doubled the benefits claimable by third parties under compulsory motor vehicle liability insurance (CMVLI). Under Insurance Memorandum Circular (IMC) 2024-01, substantial increases have been implemented across various indemnity categories, signifying a significant step forward in ensuring greater security for all stakeholders within the automotive industry.

IMC 2024-01 introduces the doubling of the limit for third-party liability claims under CMVLI, raised to Php200,000.00 from the previous cap of Php100,000.00. This adjustment reflects the evolving cost dynamics of addressing accidents and underscores the Insurance Commission's commitment to safeguarding the rights of third parties affected by motor vehicle mishaps.

Additionally, death indemnity provisions, now covering burial and funeral expenses, have been elevated to Php200,000.00, a substantial enhancement from prior indemnity amounts. This revision aims to alleviate the financial burdens faced by families and loved ones in the aftermath of tragic accidents.

Source: Autoindustria

Another critical amendment is the doubling of the no-fault indemnity from Php15,000.00 to Php30,000.00. This provision ensures fair compensation for passengers without the need to establish fault or negligence, streamlining the claims process and fostering an equitable dispensation of justice.

Furthermore, IMC 2024-01 mandates coverage for other incidental expenses not covered by standard indemnities, subject to a maximum of Php10,000.00. This comprehensive approach reflects the Insurance Commission's commitment to addressing the diverse needs of accident victims.

Crucially, IMC 2024-01 reaffirms the Commission's stance on premium rates, ensuring stability for policyholders. Vigattin TPL Insurance stands ready to offer tailored solutions to meet the evolving needs of motorists and third parties, emphasizing innovation, affordability, and customer-centricity.

In conclusion, IMC 2024-01 signifies a significant milestone in efforts to enhance road safety and protect stakeholders' interests. Through collaborative efforts, a more resilient and inclusive insurance framework can be established, prioritizing the welfare and security of individuals nationwide.