Senate amends 38-year-old Insurance Code of the Philippines

February 4, 2013 11:40 pm 

By Jelly F. Musico

MANILA, Feb. 4 — The Senate on Monday unanimously approved on third and final reading a bill amending the 38-year-old Insurance Code of the Philippines.

Voting 16-0 with no abstention, the Senate passed the Senate Bill No. 3280 which Senator Sergio Osmena III said must be amended to make it relevant to the changes that have transpired in the insurance industry.

”It is also in anticipation of future transformation that it is bound to undergo considering the growing sophistication of industries across the globe,” Osmena, chairman of the Senate committee on banks, financial institutions and currencies, said.

Osmena named major changes in the industry that include increased product diversity, sophistication in the sales’ and clients’ servicing practices, expansion of investment instruments and opportunities, evolving requirements of the industry, diversification of distribution channels to the insuring public and the need for improved and expanded protectionist provisions.

Once the bill is passed into law, policy holder interest promoting amendments like allowing government employees to acquire insurance by payment of premiums through salary deductions have also been allowed.

Other amendments promoting the interest of the policy holder includes the increased amount of exemption from court authority or judicial bond requirements in the parent’s exercise of minor’s rights under the policy and the adjudication of contested claims cases at the insurance commission level.

Investment instruments that were not in existence in the Insurance Code have also been included in the list of admissible assets under the proposed legislation that would have a “positive impact in the network of insurers.”

Moreover, a financial reporting framework which adopts internationally-accepted accounting standards in the reporting of the financial condition of insurers had been added as accounting-related amendment.

Senate Bill No. 3280 is a consolidation of bills filed by Senators Edgardo Angara, Antonio Trillanes IV, Jinggoy Ejercito Estrada, Ramon Revilla Jr., Miriam Defensor Santiago and Manny Villar, taking into consideration House Bill No. 4867 introduced by Representatives Juan Edgardo Angara, Erminilando Mandanas, Sergio Apostol, Guillermo Romarate and Teodorico Haresco. (PNA)

DSP/JFM

Comments

3 Responses to “Senate amends 38-year-old Insurance Code of the Philippines”

  1. Pedro_calica on February 5th, 2013 7:45 am

    Nagustuhan ko yung part na magkakaroon ng bagong system sa reporting nito para masiguaradong walang hocus pocus na nangyayari dito. Well done, Senators/reps. Yung FOI bill naman ang next sana

  2. Dice on February 5th, 2013 7:48 am

    “government employees to acquire insurance by payment of premiums through salary deductions have also been allowed.”

    > ipasa na ito please. magagamit namin po ito 🙂 salamat in advance!

  3. ina on February 5th, 2013 7:50 am

    Step up yung lawmakers natin ah. I love how they work right now and this gains my trust back to our gov’t.