Private Insurance

Companies
 What To Expect Today…

• Discuss the fundamentals of Insurance

• Identify examples of insurance companies in the Philippines

• Present a sample of insurance documents

• Fill out insurance forms

 PONDER ON THESE!

Persons and properties are all subject to

various forms of risks and hazards.
No one knows when which man will die or
which property will be destroyed.
The possibility of losses is always present.
 Who, among you,
already got any type
of insurance?
 Why do we need
private insurances in
our lives?
 What is the
fundamental
principle of all forms
of insurance?
• RISK: The most important factor in the business
of insurance

• LOSSES: Sharing of Burden

What is an
insurance?
Insurance is a contract, represented by a policy,
in which an individual or entity receives
financial protection or reimbursement against
losses from an insurance company.
What is an insurance
company?
 Insurance Company. A mechanism for
distributing equitable losses among a large
number or persons who are subjects to a
particular risk
"Insurance company" means a company which
is organized as an insurance company, whose
primary and predominant business activity is
the writing of insurance or the reinsuring of
risks underwritten by insurance companies,
and which is subject to supervision by the
Insurance Commissioner; or any receiver or
similar official or any liquidating agent for such
a company, in his capacity as such.
What is a private
insurance?
 Private Insurance. The one provide loan
funds and they are engaged in the business
of investments. They also contribute to the
socio-economic development of the
country and the insured.
 The Principle Of
Sharing Losses: Fair
or Unfair?
Sharing losses. The fundamental principle
of all forms of insurance.

For example: in an association of 1,000

individuals, if one member loses his
property worth 250,000, the other 999
members contribute to the loss of the
victim.
What is the governing
law that regulates
insurance and
insurance
companies?
Insurance Code of 1978 otherwise known
as Presidential Decree No. 1460 – the
principal law to reckon with in the
operations and business transactions of
insurance companies.
Originally it was Act No. 2427 copied from
Civil Code of California
 Insurance Code of 1978 – special law
Civil Code of the Philippines – general law
Presidential Decree No. 1146 – created
GSIS
Republic Act No. 1161 – created SSS
Presidential Decree No. 1467 – created
PCIC
 What entities are
engaged in insurance
business?
 Public And Private Insurance Institutions

+ Public sector refers to GSIS, SSS, PCIC.

+ Private sector refers to private insurance
companies (domestic and foreign) which
are subject to the provisions of the
Insurance Code of 1978.
Private Insurance Institutions

Life
Non-Life
Pre-Need
Education
 What transactions
are included in doing
an insurance
business?
 Doing An Insurance!

1. Making, or proposing to make, as insurer,

any insurance contract
2. Making, or proposing to make, as surety,
any suretyship as a vocation, and not as
merely incidental to any other legitimate
business or activity of the surety.
 Doing An Insurance!

3. Doing any kind of business, including a

reinsurance business, specifically
recognized as constituting the doing of an
insurance business within the meaning of
the Insurance Code of 1978
 Doing An Insurance!

4. Doing or proposing to do any business in

substance equivalent to any of the
foregoing in a manner designed to evade
the provisions of the said Insurance Code.
Forms of Business
Organizations
 Sec. 184 – the “insurer” or “insurance
company” shall include all individuals,
partnerships, associations, or corporations,
including government-owned or controlled
corporations or entities, engaged as
principal in the insurance business,
excepting mutual benefit associations
 “Domestic Company” – shall include
companies formed, organized or existing
under the laws of the Philippines.

“Foreign Company” – includes companies

formed, organized, or existing under any
laws other than those of the Philippines.
 Sec. 185 – “insurance companies” are
corporations formed or organized to save
any persons or persons of other
corporations harmless from loss, damage
or liability arising from any unknown or
future or contingent event or to indemnify
or to compensate a person.
The Insurance
Commission
The Insurance Commission. The government
agency that exercises supervision and
regulation over the operation and formation of
entities that will engage in the business of
insurance in the Philippines
• Tasked to implement, execute, and require compliance of
insurance companies in the Philippines
• Casualty
• Suretyship
• Consolidation and merger of insurance companies
• Mutualization of Stock Life Insurance Companies
• Holding Companies
• Compulsory Motor Vehicle Liability Insurance
• Mutual Benefit Association
• Trusts for Charitable Uses