IC to hike motor vehicle insurance premium

The government is planning to increase the insurance premium of select vehicles while also doubling indemnity claims of vehicular accident victims as part of efforts to improve overall coverage in the country.

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In a notice, the Insurance Commission (IC) released the draft on the revised compulsory motor vehicle liability insurance (CMVLI) covering updated premiums and benefit coverage.

The CMVLI is the most basic kind of motor vehicle insurance among non-life firms, which pays for the expenses for the death or injuries suffered by passengers of an insured vehicle.

IC commissioner Reynaldo Regalado said the revisions aim to improve coverage for victims of road traffic accidents and align with the national policy of ensuring accessible and adequate financial protection.

He said the main purpose of the CMVLI is to ensure that the owners and operators of motor vehicles have the means and resources to indemnify the death or injuries of passengers.