The Insurance Commission (IC) is proposing to increase premium rates for motor vehicle insurance while also expanding the maximum coverage for policyholders.

A draft circular dated June 27, intended for review by non-life insurance companies, proposed an increase in certain basic premium rates for both one-year and three-year coverages, with some rates remaining unchanged since 2006.

Under the revised one-year compulsory motor vehicle liability insurance (CMVLI) coverage, proposed increases affect three vehicle classifications: air-conditioned (AC) and tourist cars, from ₱591 to ₱906; taxi, public utility jeepney (PUJ), and minibus, from ₱878 to ₱1,346; and public utility bus (PUB) and tourist bus, from ₱1,157 to ₱1,303.

For a three-year coverage, basic premium rates would also see a rise: AC and tourist cars, from ₱1,693 to ₱2,595; taxi, PUJ, and minibus, from ₱2,515 to ₱3,856; and PUB and tourist bus, from ₱3,313 to ₱3,730.

Meanwhile, one-year coverage for motorcycles, trailers, and tricycles remains at ₱200; private cars (including jeeps and utility vehicles) at ₱447; light and medium commercial vehicles at ₱487; and heavy commercial vehicles at ₱958.

Similarly, three-year coverage premium rates for motorcycles, trailers, and tricycles will stay at ₱574; private cars (including jeeps and utility vehicles) at ₱1,285; light and medium commercial vehicles at ₱1,404; and heavy commercial vehicles at ₱2,747.

Since 2006, the total premium has included fixed additional charges: 12.5 percent for documentary stamps (DST), 12 percent for expanded value-added tax (eVAT), and 0.75 percent for local government tax (LGT).

The proposed changes also increased benefits for policyholders. Death indemnity, including burial and funeral expenses, is proposed to be raised to ₱400,000 from the existing ₱100,000. This amount refers to the sum paid to the family or beneficiaries of a person who has died, typically due to an accident or covered event under an insurance policy.

The IC stated that the total benefits payable for any single incident resulting in a loss would be capped at ₱400,000 per incident.

Benefits for permanent disablement due to accidents have been proposed to increase from ₱50,000 to ₱200,000. This revised rate would cover severe injuries such as loss of two limbs, sight of both eyes, or conditions causing permanent total disablement.

The existing ₱30,000 benefit for the loss of both ears was raised to ₱120,000. For the loss of one ear, the benefit will be ₱60,000, up from ₱15,000.

For the loss or loss of use of various body parts (e.g., an arm, hand, leg, foot, fingers, thumb, or sight of one eye), benefits were also raised in varying amounts, now ranging from ₱24,000 to ₱80,000, up from the previous range of ₱6,000 to ₱20,000.

Insured policyholders may also be reimbursed higher amounts for medical services fees and charges incurred due to bodily injuries and fractures.

Non-life insurance firms offering CMVLI have until July 11 to submit their feedback to the IC. If approved, this draft insurance circular will supersede Insurance Memorandum Circular (IMC) Numbers 4-2006 and 1-2024.