MOTOR VEHICLE

INSURANCE

Policy coverage
Section I Liability to the
Public
Section II No Fault Indemnity
Section III - Loss or Damage
Section IV - Excess Liability
Insurance

Definition of Terms
1. Motor Vehicle - any vehicle propelled by any power other than muscular
power using the public highways
2. Driver - shall mean every and any licensed operator of a motor vehicle
3. Third Party - any person other than a Passenger as defined in the law and
shall also exclude a member of the household, or a member of the family
within the second degree of consanguinity or affinity of a motor vehicle
owner or his employee in respect of death, bodily injury or damage to
property arising out of and in the course of employment.
4. Authorized Driver refers to the Insured or to any person driving on the
Insureds order or with his permission
5. Deductible - the amount to be shouldered by the insured in case of a claim.
This is specifically indicated on the Motor Car Policy and varies depending on
the type of policy issued.
6. Depreciation - refers to the amount equivalent to a certain percentage (%)
(depending on the age of the vehicle) to be deducted from the proceeds of a
claim under Section III of the Motor Car Policy. However, depreciation is not
applicable in case of total loss.
7. Insured - a person with an insurable interest, who stands to benefit from a
policy of insurance.
8. Insurer - a person or company that underwrites an insurance risk

Section I Liability to the Public

1. The Company will, subject to the Limits of Liability pay
all sums necessary to discharge liability of the Insured
in respect of bodily injury and/or death to any THIRD
PARTY, in an accident caused by or arising out of the
use of the Scheduled Vehicle, provided that the
Insureds liability shall have first been determined.

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.

2. In terms of and subject to this Policy, the

Company will indemnify: a) Any authorized Driver who is driving the
Scheduled Vehicle, provided that he: i.

Observes, fulfill, and be subject to the Terms of this

Policy insofar as they can apply;
ii. Is not entitled to indemnity under any other policy
subject;

b) The Insured whilst personally driving a private

motor car not belonging to him and not hired
to him under a hire purchase agreement

3. In the event of the death of any

person entitled under this Policy, the
Company will, in respect of the
liability incurred to such person
indemnity his personal
representatives in terms of, and
subject to the terms and conditions
hereof.

 The nearest representatives should be

determined in the order of the
enumeration as follows: 1. The legitimate children;
2. The father and mother, if living;
3. The grandfather and grandmother, or
ascendants nearest in degree, if living;
4. The illegitimate children;
5. The surviving spouse; and
6. The collateral relatives, to wit,
1) Brothers and sisters of the full blood;
2) Brothers and sisters of the half blood; and
3) Nephews and nieces.

4. The Company will pay all pertinent and

reasonable costs and expenses incurred in
connection with the accident.
5. In the event of accident involving indemnity
under this Policy to more than one person, the
Limits of Liability shall not exceed the
aggregate amount so specified by Law to all
persons to be indemnified. Should
indemnification both to liability of the Insured
and that of another party be probable, the
Insured shall have prior rights thereto.

6. Unless the Insured objects, the Company

shall: a) Arrange for representation at any inquest or
investigation in respect of any death which
may be the subject of indemnity under this
Section;
b) Undertake the defense in the Insurance
Commission under section 385 of the Insurance
code, or in any court of law, for alleged offense
causing, or relating to, any event which may be
the subject of indemnity under this Section.

SCHEDULE OF INDEMNITIES FOR BODILY INJURY AND/OR

DEATH
A.
DEATH INDEMNITY

P70, 000.00

Burial and Funeral Expenses

30,000.00

Exceptions to Section III

1. Loss or Damage in respect of any claim or series of claims
arising out of one event unless such loss or damage is in excess
of the Deductible and then only for such excess;

3. Except in respect of claims arising

under Sections I and II of this policy,
any accident, loss, damage or
liability directly or indirectly,
proximately or remotely occasioned
by, contributed to by or traceable
to, or arising out of, or in connection
with the act of God, act of man, or
by any direct or indirect
consequences of the said