Senate Bill 3966, makes insurance firms pay for fortuitous events
Last year, at the onslaught of tropical storms Ondoy and Pepeng, many motor vehicles were swept and inundated by floods and landslides, rendering them inoperable and in many cases, beyond repair.
Car owners who filed claims from their insurance companies for their losses were met with the ‘acts of God’ clause in insurance policy, which frees insurance from any liability.
Because of this, Senate Minority Floor Leader Aquilino Q. Pimentel, Jr. filed Senate Bill 3966 to protect car owners who religiously pay their insurance premiums from being left empty-handed when filing their claims for such incidences.
SB 3966 will make insurance firms to pay for losses even though they are caused by fortuitous events, or what they call ‘acts of God.’
The Pimentel bill provides that “in case of a comprehensive motor vehicle insurance, no policy shall 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, typhoons, volcanic eruptions, earthquakes and other related natural calamities, or indirectly, proximately or remotely occasioned by, contributed to or traceable to, arising out of, or in connection with the aforementioned natural events.”
Pimentel said that his bill will do away with the malpractice of insurance firms of refusing to compensate holders of comprehensive motor vehicle insurance policy on the ground that the natural disaster are acts of God that are beyond the ambit of the policy.
January 22, 2010
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