Philippines proposes motor premium hikes with wider cover

The revised premium structure retains fixed additional charges.

Philippines’ Insurance Commission (IC) plans to increase the premium rates for motor vehicle insurance, whilst expanding the maximum coverage.

According to a draft circular dated 27 June, it proposes increased premium rates for select vehicle classifications under both one-year and three-year coverage plans.

The revised premium structure retains fixed additional charges, including a 12.5% documentary stamp tax, 12% expanded VAT, and 0.75% local government tax, as set since 2006.

In addition to rate changes, the IC is proposing expanded benefits for policyholders.

The revised circular also proposes higher reimbursement for medical service fees and charges resulting from bodily injuries or fractures.