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What is 'Bancassurance'

Bancassurance is an arrangement in which a bank and an insurance company form a partnership so that
the insurance company can sell its products to the bank's client base. This partnership arrangement can
be profitable for both companies. Banks can earn additional revenue by selling the insurance products,
while insurance companies are able to expand their customer bases without having to expand their sales
forces or pay commissions to insurance agents or brokers.


Section 375. The term bancassurance shall mean the presentation and sale to bank customers by an
insurance company of its insurance products within the premises of the head office of such bank duly
licensed by the Bangko Sentral ng Pilipinas or any of its branches under such rules and regulations which
the Commissioner and the Bangko Sentral ng Pilipinas may promulgate. To engage in bancassurance
arrangement, a bank is not required to have equity ownership of the insurance company. No insurance
company shall enter into a bancassurance arrangement unless it possesses all the requirements as may
be prescribed by the Commissioner and the Bangko Sentral ng Pilipinas.

"No insurance product under this section, whether life or non-life, shall be issued or delivered unless in
the form previously approved by the Commissioner.

"Section 376. Personnel tasked to present and sell insurance products within the bank premises shall be
duly licensed by the Commissioner and shall be subject to the rules and regulations of this Act.

"Section 377. The Commissioner and the Bangko Sentral ng Pilipinas shall promulgate rules and
regulations to effectively supervise the business of bancassurance.


Departure of vessel from course of voyage, or an unreasonable delay in pursuing voyage or the
commencement of an entirely different voyage

Deviation is proper when

1. If due to circumstances outside the control of the ship captain or shipowner

2. If done to comply with a warranty
3. Made in good faith to avoid a peril
4. If made to save a human life or another distressed vessel
Averages and implied warranties

Implied warranties

1. That the ship is seaworthy at the inception of the insurance

2. That the ship will not deviate from the agreed voyage unless deviation is proper
3. That the shill will not engage in an illegal venture
4. Warranty of possession of documents of neutrality; that the ship will carry the requisite
documents of nationality or neutrality of the ship or cargo where such nationality or neutrality is
expressly warranted
5. Presence of insurable interest


Principle: The insurer of the vessel or cargo that are saved is liable for general average contribution and
not for particular average. Only the insurer of the damage cargo or vessel is liable for particular average
if covered by the policy.

General Average Loss

-inludes damages and expenses which are deliberately caused by the master of the vessel of upon his
authority in order to save the vessel, her cargo, or both at the same time from real or known risk. It must
be borne equally by all of the interest concerned in the venture. Under this, the requisites to the right to
claim general average loss are

1. there must be common danger to the vessel or cargo

2. part of the vessel or cargo are sacrificed deliberately

3. the sacrifice must be for the common safety or for the benefit of all

4. it must be made by the master or upon his authority

5. it must be successful that is it resulted in the saving of the vessel or cargo and

6. it must be necessary

Particular Average Loss

-includes all damages and expenses caused to the vessel or to her cargo which have not inured to the
common benefit and profit of all persons interested in the vessel or her cargo. It refers to those losses
which occur under such circumstances as do not entitle the unfortunate owners to receive contribution
from other owners concerned in the venture as where a vessel accidentally runs aground and goes to
pieces after the cargo is saved.

Insurance products that offer coverage to low-income households. A microinsurance plan provides
protection to individuals who have little savings and is tailored specifically for lower valued assets and
compensation for illness, injury or death.

"Section 187. Microinsurance is a financial product or service that meets the risk protection needs of the
poor where:

"(a) The amount of contributions, premiums, fees or charges, computed on a daily basis, does not exceed
seven and a half percent (7.5%) of the current daily minimum wage rate for nonagricultural workers in
Metro Manila; and

"(b) The maximum sum of guaranteed benefits is not more than one thousand (1,000) times of the current
daily minimum wage rate for nonagricultural workers in Metro Manila.

"Section 188. No insurance company or mutual benefit association shall engage in the business of
microinsurance unless it possesses all the requirements as may be prescribed by the Commissioner. The
Commissioner shall issue such rules and regulations governing microinsurance.

Authorized Drive clause

-a stipulation in a motor vehicle insurance which provides that the driver, other than the insured owner,
must be duly licensed to drive the motor vehicle otherwise the insurer is excused from liability.

The clause means that the insurer indemnifies the insured owner against loss or damage to the car but
limits the use of the insured vehicle to the insured himself or any person who drives on his order or with
his permission

1. The insured nee not prove that he has a drivers license at the time of the accident if he was the
2. If the claimant was able to present a drivers license the same is presumed to be genuine. Thus,
even if it was established that the driver does not know how to read and write, the license will
still be sustained in the absence of proof that it was not validly issued
3. A drive (not the insured) who holds an expired drivers license is not an authorized driver.