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Motor Car Insurance is any
insurance pertaining to the ownership, maintenance,
or use of motor vehicle. It is also a contract between
two (2) parties whereby one (the Insurer) promises for
a consideration (premium) to indemnify another (the
Insured) for direct loss or damage of the insured vehicle
and to pay any claim for death of or bodily injury to
and property damage of any Third Party caused by or
arising from the ownership or operation of the motor
vehicle.
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1. Private Car
Policy. This policy covers private motor vehicles
used for social, domestic and pleasure purposes,
and for the Insured’s business or profession.
This excludes cars being hired out to other parties.
2. Commercial Vehicle Policy.
This policy covers motor vehicles used mainly
for commercial (business) purposes such as those
transporting goods or products from one place
to another in connection with the Insured’s
business except carriage of goods for hire or
reward, used for transporting passengers for compensation.
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Basic Coverages of Motor Insurance Policy
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1.
Compulsory Third Party Liability (CTPL). Its
an insurance against liability for death or bodily
injury of third parties arising from motor vehicles
accidents resulting from fault or negligence of
the assured or any authorized driver while driving
the insured motor vehicle. This is further subject
to the Schedule of Indemnities stated in the policy.
2. No Fault Indemnity. This section ensures
the protection of third party against bodily injury
and/or death without the necessity of proving
fault or negligence of any kind provided : |
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a. Total indemnity of
any one Third Party shall not exceed P15,000.00.
b. Following documents shall be submitted, under
oath:
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i. Police report of the accident
or any evidence sufficient to establish the
claim;
ii. Medical report and evidence of medical
or hospital expenses
iii. Death Certificate and evidence sufficient
to establish the proper payee |
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3. Loss and Damage. This cover
protects and will indemnify the Insured against
loss or damage to the insured motor vehicle as well
as its built-in accessories and its spare parts
resulting from:
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a. Accidental collision or overturning
b. Fire, external explosion, self-ignition
c. Malicious act; and
d. Whilst in transit |
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Fair Market Value. This is the basis for arriving
at the estimate of the value to be used as the limit
of liability for the loss and damage cover.
Deductible. This is the participation
of the insured for each and every loss/damage.
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4. Excess Liability Insurance |
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a. Excess Liability against death / bodily
injury (to any Third Party). This cover is
similar to that of CTPL. However, this will only
respond once CTPL limit of P50,000.00 has been
exhausted and this no longer subject to Schedule
of Indemnities. Amount of cover may range from
100,000 to 500,000 depending on the type of motor
vehicle being insured and its corresponding premium
is based on the regulated premiums of Insurance
Commission.
b. Excess Liability against
Property Damage (to any Third Party). This
cover is only limited to protect assured against
damages to properties of third party which he
might incur in the use or operation of his insured
motor vehicle. Amount of cover may range from
100,000 to 500,000 depending on the motor vehicle
being insured and its corresponding premium is
based on the regulated premiums of Insurance Commission.
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5. Unnamed Personal Accident. This is an
optional cover that provides protection to occupants
riding in, boarding in, or alighting out of the
insured motor vehicle. Premiums may vary from
one insurance company to another.
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