MICROINSURANCE

Is a financial product or service that meets the needs and protection that needed by the poor
where the amount of contributions, premiums, fees or charges computed on a daily basis does not
exceeds 7 ½ percent of the current daily minimum wage for non-agricultural workers for metro manila.
The maximum sum of the guaranteed benefits is not more than 1000 times of the current of the daily
minimum wages for non-agricultural workers in metro manila.

COMPLUSORY MOTOR VEHICHLE LIABILITY INSURANCE

- Is a specie of compulsory insurance that provides for protection coverage that will answer for
legal liabilities for losses or damages for bodily injuries or property damage that may be sustain
by another arising from the use or operation of motor vehicle by its owner.

Purpose: to give immediate financial assistance to victims of motor vehicle accidents or their
defendants.

No-fault indemnity claim – option to file a claim for death of injury without proving fault. 15k. does not
apply to property damage.

Authorized driver clause

COMPULSORY INSURANCE COVERAGE FOR AGENCY-HIRED WORKERS

- Is an insurance mechanism made available by the law to provide insurance protection for our
ofw. The agency-hired ofw compulsory insurance is mandatory. However, is it not mandatory for
direct-hired, name hired or re-hired.
- Provides several benefits such accidental death, natural death, permanent total disabilities,
repatriation cause benefits, existence allowance benefits, money benefits, compassionate
benefits etc.
- Two-year contestability period is not applicable.
- It must be the agency that should apply for the insurance benefit not the workers.
- The recruitment or the manning agency should be the one to pay the premium.

Variable contract

238 of the IC

- It shall mean any policy or contract or either group or individual basis issued by Insurance
company providing for benefits or other contractual payments value thereunder so as to reflect
the investment result of any portfolio investment. Meaning it is tied to the investment made on
the contract. In layman’s term a variable life insurance is a permanent life insurance policy with
an investment component. The policy has a cash value account which is invested in a number of
sub-accounts available in the policy. A sub-account acts similar to a mutual fund except it is only
available within a variable like insurance policy. These contracts are riskier than a typical
 contract because they them on the value of a separate account that serves as the backing for
the contract.

Insurable interest

- Double insurance and over insurance

Over insurance – when the insured insures the same property for the amount greater than the value of
the property with the same insurance company. In case of loss the insurer is bound to pay on the real
value of the property loss. The insured my demand return of the excess of the premium paid.

Additional or other insurance clause – is a condition in the policy requiring the insured to inform the
insurer of any other insurance coverage of the property insured is lawful and specifically allowed.

Multiple or several interest on same property