INSURANCE REVIEWER– Atty. Quimsonpage 1
THE INSURANCE CODE OF 1976
(Presidential Decree No. 1460)
. This decree shall be known as the “Insurance Code of 1978”
What is the principle behind insurance?
Insurance is based upon the principle of aiding another from a loss caused by an unfortunate event.
How old is the concept of insurance?
Very old. Benevolent societies organized for the purpose of extending aid to their unfortunate membersfrom a fund contributed by all, have been in existence from the earliest times. They existed among theEgyptians, the Chinese, the Hindus, the Romans, and are known to have been established among the Greeksas early as, believe it or not, 3 B.C.
How did insurance develop in the Philippines?Pre-Spanish Era
- there was no insurance; every loss was borne by the person or the family whosuffered the misfortune.
– Insurance, in its present concept, was introduced in the Philippines when Lloyd’s of London appointed Strachman, Murray & Co., Inc. as its representative here.
– Life insurance was introduced in this country with the entry of Sun Life Assurance of Canada inthe local insurance market.
First domestic non-life insurance company, the Yek Tong Lin Insurance Company, was organized
First domestic life insurance company, the Insular Life Assurance Co., Ltd., was organized
Union Insurance Society of Canton appointed Russel & Surgis as its agent in Manila. The businesstransacted the Philippines was then limited to
Social insurance was established with the enactment of Commonwealth Act no. 186 whichcreated the Government Service Insurance System (GSIS) which started operations in 1937. The Act coversgov’t employees.
– Government agency was formed to handle insurance affairs, where the Insular Treasurer wasappointed commissioner ex-officio.
– Reinsurance was introduced by the Reinsurance Company of the Orient when it wrote treaties forboth life and non life.
– First workmen’s compensation pool was organized as the Royal Group Incorporated.
– RA 1161 was enacted which provided for the organization of the Social Security System (SSS)covering employees of the private sector.At present, there are 130 insurance companies registered with the Office of the Insurance Commissioner.Of these, 2 are composite insurance companies (engaged in both life and non-life insurance), 23 are lifeinsurance companies, 101 are non-life insurance companies and 4 are reinsurance companies.
How did insurance laws develop in the Philippines?
, the laws on insurance were found in Title VII of Book II and Section III of TitleIII of Book III of the Spanish Code of Commerce; and in Chapters II and IV of Tile XII of Book IV of the SpanishCivil Code of 1889 (
, on Dec. 11, 1914, the Phil Legislature enacted the Insurance Act (Act2427). This Act which took effect on July 1, 1915 repealed the provisions of the Spanish Code of Commerceon Insurance.When the Civil Code of the Philippines (RA 386) took effect on August 30, 1950, the provisions of theSpanish Civil Code of 1889 were likewise repealed. For quite a long time, the Insurance Act was thegoverning law on insurance in the Philippines.On Dec. 18, 1974, PD 612 was promulgated, ordaining and instituting the Insurance Code of thePhilippines, thereby repealing Act 2427. PD’s 63, 123 and 317 were issued, amending PD 612. Finally PD1460 which took effect on June 11, 1976 consolidated all insurance laws into a single code and this is whatwe know now as the Insurance Code of 1978.
What are the present laws that govern insurance
also known as the laws we have to know for exams)
?3D rhys alexei