motor vehicle insurance policy
DESCRIPTION
Motor Vehicle Insurance Policy (Philippines)Policy coverageSection I – Liability to the Public or CTPLSection II – No Fault IndemnitySection III - Loss or DamageSection IV - Excess Liability InsuranceDefinition of termsMotor Vehicle - any vehicle propelled by any power other than muscular power using the public highwaysDriver - shall mean every and any licensed operator of a motor vehicleThird 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.Authorized Driver – refers to the Insured or to any person driving on the Insured’s order or with his permissionInsured - a person with an insurable interest, who stands to benefit from a policy of insurance.Insurer - a person or company that underwrites an insurance riskSchedule of IndemnityGeneral ExceptionsTRANSCRIPT
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 vehicle3. 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 Insured’s 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 Public1. 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 Insured’s 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; and3) 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
DEATH INDEMNITY P70, 000.00
Burial and Funeral Expenses 30,000.00
A.
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 occurrences and in the event of any claim hereunder.
