The Insurance Commission (IC) plans to increase the limit for compulsory motor vehicle liability insurance (CMVLI) from P200,000 to P400,000 per incident and for all types of vehicles.

In its draft circular letter, IC said the CMVLI adjustment supports President Ferdinand Marcos Jr.'s goal to enhance benefits to victims of vehicle and traffic accidents.

"The CMVLI benefits align with the national policy of ensuring accessible and adequate financial protection, regardless of at-fault party's ability to pay," IC said.

The CMVLI benefits were last modified in February 2024 through Insurance Memorandum Circular No. 2024-01. 

The higher CMVLI limit covers medical, professional, and hospital fees; death, burial and funeral expenses; and permanent disablement. 

IC shared that the draft circular considered the proposal of the Philippine Insurers and Reinsurers Association Inc. on higher CMVLI premium and benefit rates.

The regulator said PIRA suggested benefits for injuries related to permanent disablement be increased from P50,00 to P200,000. These include the loss of both limbs, hands, feet, and thumbs; vision on both eyes, and loss of one hand and one foot.

For less serious injuries, such as hearing loss and partial disablement of limbs, PIRA proposed benefits ranging from P24,000 to P120,000.

Meanwhile, the total premium rate for one-year CMVLI coverage for private cars is set at P1,134.49, taxi and minibus at P1,686.40, motorcycles and tricycles at P250, light commercial vehicles at P610, and heavy commercial vehicles at P1,200.

To ensure fair prices, IC requests the public to electronically email their suggestions until 17 July to the Insurance Commissioner's Office address at ocom@insurance.gov.ph.

From the effectivity of the circular, non-life insurance firms will be given three months to secure product approvals from the IC before they announce new CMVLI policies.