A
collection of Philippine laws, statutes and codes
not
included or cited in the main
indices
of
the
Chan Robles Virtual Law Library
PRESIDENTIAL DECREE NO. 1814
PRESIDENTIAL DECREE NO. 1814
- AMENDING CERTAIN SectionS OF PRESIDENTIAL DECREE NO. 1460, OTHERWISE
KNOWN AS THE INSURANCE CODE
|
chanroblesvirtualawlibrary
WHEREAS,
Presidential Decree No. 1460, otherwise known as the Insurance Code,
was promulgated primarily to promote and develop a strong national
insurance industry and to provide the necessary operating conditions
for its integration in the economic and social development of the
Philippines;chanroblesvirtualawlibrary
WHEREAS, the prevailing economic conditions necessitate the amendment
of said Decree to ensure the due execution and performance of insurance
contracts in the interests of the sound development of the national
economy; chanroblesvirtualawlibrary
WHEREAS, there is a need to amend the said Decree to further assure
reasonable insurance services for the protection of the interests of
the policy holders and the public.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
decree and order the amendment of Presidential Decree No. 1460
otherwise known as the Insurance Code, as follows:cralaw:red
Section 1. Section 305, Title I, Chapter IV, of
Presidential Decree No. 1460 otherwise known as the Insurance Code is
hereby amended to read as follows:cralaw:red
"Sec. 305. An application for the issuance or renewal
of a license to act as an insurance agent or insurance broker may be
refused, or such license, if already issued or renewed, shall be
suspended or revoked if the Commissioner finds that the application
for, or holder of, such license:cralaw:red
(a) has willfully violated any provision of this
Code; or
(b) has intentionally made a material misstatement in
the application to qualify for such license; or
(c) has obtained or attempted to obtain a license by
fraud or misrepresentation; or chanroblesvirtualawlibrary
(d) has been guilty of fraudulent or dishonest
practices; or
(e) has misappropriated or converted to his own use
or illegally withheld moneys required to be held in a fiduciary
capacity;chanroblesvirtualawlibrary
(f) has not demonstrated trustworthiness and
competence to transact business as an insurance agent or insurance
broker in such manner as to safeguard the public; or
(g) has materially misrepresented the terms and
conditions of policies or contracts of insurance which he seeks to sell
or has sold; or
(h) has failed to pass the written examination
prescribed, if not otherwise exempt from taking the same.
In addition to the foregoing causes, no license to act as insurance
agent or insurance broker shall be renewed if the holder thereof has
not been actively engaged as such agent or broker in accordance with
such rules as the commissioner may prescribe.
Section 2. Paragraph (c) of Section 373, Chapter VI,
of Presidential Decree No. 1460, otherwise known as the Insurance Code
is hereby amended to read as follows:cralaw:red
"(c) `Third Party' is any person other than a
passenger as defined in this section 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 land
transportation operator, as likewise defined herein, or his employee in
respect of death or bodily injury, arising out of and in the course of
employment;"
Section 3. Paragraph (f) of Section 373 of the same
Decree is hereby amended to read as follows:cralaw:red
"(f) `Insurance Policy' or `Policy' refers to a
contract of insurance against passenger and third-party liability for
death of bodily injuries arising from motor vehicle accidents."
Section 4. Section 374 of the same Decree is hereby
amended to read as follows:cralaw:red
"Sec. 374. It shall be unlawful for any land
transportation operator or owner of a motor vehicle to operate the same
in the public highways unless there is in force in relation thereto a
policy of insurance or guaranty in cash or surety bond issued in
accordance with the provisions of this chapter to indemnify the death
or bodily injury of a third party or passenger, as the case may be,
arising from the use thereof."
Section 5. Section 377 of the same Decree is hereby
amended to read as follows:cralaw:red
"Sec. 377. Every land transportation operator and
every owner of a motor vehicle shall, before applying for the
registration or renewal of registration of any motor vehicle, at his
option, either secure an insurance policy or surety bond issued by an
insurance company authorized by the Commissioner or make a cash deposit
in such amount as herein required as limit of liability for purposes
specified in section three hundred seventy-four.
"(1) In the case of a land transportation operator
the insurance or guaranty in cash or surety bond shall cover liability
for death or bodily injuries of third parties and/or passengers arising
out of the use of such vehicle in the amount not less than twelve
thousand pesos per passenger or third-party and an amount for each of
such categories, in any one accident, of not less than that set forth
in the following scale:cralaw:red
(a) Motor vehicles with an authorized capacity of
twenty-six or more passengers: fifty thousand pesos;chanroblesvirtualawlibrary
(b) Motor vehicles with an authorized capacity of
from twelve to twenty-five passengers: forty thousand pesos;chanroblesvirtualawlibrary
(c) Motor vehicles with an authorized capacity of
from six to eleven passengers: thirty thousand pesos;chanroblesvirtualawlibrary
(d) Motor vehicles with an authorized capacity of
five or less passengers: five thousand pesos multiplied by the
authorized capacity.
"Provided, however, That such cash deposit made to, or surety bond
posted with, the Commissioner shall be resorted to by him in cases of
accidents the indemnities for which to third-parties and/or passengers
are not settled accordingly by the land transportation operator and, in
that event, the said cash deposit shall be replenished or such surety
bond shall be restored within sixty days after impairment or expiry as
the case may be, by such land transportation operator, otherwise, he
shall secure the insurance policy required by this chapter. The
aforesaid cash deposit may be invested by the Commissioner in readily
marketable government bonds and/or securities. chanroblesvirtualawlibrary
"(2) In the case of an owner of a motor vehicle, the
insurance or guaranty in cash or surety bond shall cover liability for
death or injury to third-parties in an amount not less than that set
forth in the following scale in any one accident:cralaw:red
I. Private Cars
(a) Bantam: Twenty Thousand Pesos;
(b) Light: Twenty Thousand Pesos;
(c) Heavy: Thirty Thousand Pesos;chanroblesvirtualawlibrary
II. Other Private Vehicles
(a) Tricycles, motorcycles, and scooters: twelve
thousand pesos;
(b) Vehicles with an unladen weight of 2,600 kilos or
less: twenty thousand pesos;
(c) Vehicles with an unladen weight of between 2,601
kilos and 3,930 kilos: thirty thousand pesos;
(d) Vehicles with an unladen weight over 3,930 kilos:
fifty thousand pesos.
"The Commissioner may, if warranted, set forth schedule of indemnities
for the payment of claims for death or bodily injuries with the
coverages set forth herein." chanroblesvirtualawlibrary
Section 6. Section 379 of the same Decree is hereby
amended to read as follows: chanroblesvirtualawlibrary
"Sec. 379. No land transportation operator or owner
of motor vehicle shall be unreasonably denied the policy of insurance
or surety bond required by this chapter the insurance companies
authorized to issue the same, otherwise, the Land Transportation
Commission shall require from said land transportation operator or
owner of the vehicle, in lieu of a policy of insurance or surety bond,
a certificate that a cash deposit has been made with the Commissioner
in such amount required as limits of indemnity in section three hundred
seventy-seven to answer for the passenger and/or third-party liability
of such land transportation operator or owner of the vehicle.
"No insurance company may issue the policy of insurance or surety bond
required under this chapter unless so authorized under existing laws.
"The authority to engage in the casualty and/or surety lines of
business of an insurance company that refuses to issue or renew,
without just cause, the insurance policy or surety bond therein
required shall be withdrawn immediately."
Section 7. Section 348 of the same Decree is hereby
amended to read as follows:cralaw:red
"Sec. 384. Any person having any claim upon the
policy issued pursuant to this chapter shall, without any unnecessary
delay, present to the insurance company concerned a written notice of
claim setting forth the nature, extent and duration of the injuries
sustained as certified by a duly licensed physician. Notice of claim
must be filed within six months from date of the accident, otherwise,
the claim shall be deemed waived. Action or suit for recovery of damage
due to injury must be brought with the Commissioner or the Courts
within one year from date of accident, otherwise, the claimant's right
of action shall prescribe.
Section 8. All laws, decrees, rules and regulations
which are inconsistent herewith are hereby repealed or modified
accordingly.
Section 9. This Decree shall take effect immediately.
Done in the City of Manila,
this 16th day of January, in the year of Our Lord, nineteen hundred and
eighty-one.
|
Back
to Home
- Back
to Main
chanroblesvirtuallawlibrary
Since 19.07.98
|