FAQ's
Motor Insurance
Does the insurance automatically transfers to the new owner in the event the insured person sells the insured vehicle?
An insurance policy is a personal contract which means that it attaches to the person insured and not to the vehicle insured. In order to avail the policy benefits, the former owner of the vehicle should provide a written request to transfer the insurance policy to the new owner. Such request has to be approved by the insurance company and an endorsement to the policy has to be issued reflecting the new owner as the new named insured. In case that the former owner will not request the transfer of the insurance policy to the new owner, the new owner can buy his own insurance policy.
If I let someone else drive my car, will my insurance cover them too?
Yes. The insurance policy will still respond as long as the Authorized Driver Clause is not violated. An authorized driver can be the Insured or any person driving on the Insured’s permission.
Are the car accessories covered?
Yes, the standard car accessories are automatically covered under the Own Damage/Theft cover. However, additional accessories should be declared and be insured to ensure full coverage of your insurance policy at times of fortuitous event.
What is the process of filing a Motor Car Insurance Claim?
The process of filing a motor car insurance claim usually involves reporting the incident to the insurance company, providing evidence of the damage or loss, and filling out a claim form. The insurance company will then investigate the claim and determine the amount of compensation you are eligible for.
What type of damages are covered under the Own Damage/Theft coverage of motor insurance policy?
The type of damages are covered under the Own Damage/Theft coverage:
- Accidental damage: provides coverage to the damages caused to your vehicle in case of any accident.
- Theft of vehicle.
- Damage to vehicles due to natural calamities like flood, cyclone, landslide, rockslide, earthquake, etc.
- Damage due to fire and lightning.
What is the meaning of Deductible?
deductible is a certain amount stated in the insurance policy that the insured must pay in case of a claim.
When will the depreciation of the Motor Vehicle take effect?
The depreciation will take effect at the age over 3 years. The schedule of rate is stated in the Policy Form of the Motor Car Insurance.
Bonds Insurance
What is the difference between a bond and an insurance policy?
A Bond is a contract among at least three parties. It is issued by a surety company on behalf of a second party known as the principal. This contract guarantees that the second party will complete an obligation to a third party known as the obligee. If the obligation is not met, the third party can recover its losses from that bond. On the other hand, an Insurance Policy is a two-party contract between the insured and the insurance company. The insurance policy assumes a guaranteed promise that the insured will be compensated by the insurance company in the case of a covered loss.
What are the acceptable collaterals?
Acceptable collaterals could be in the form of cash, savings, time deposit, real estate mortgage and treasury bills or government securities.
What is an Obligee and a Principal?
An Obligee is the entity entitled to receive a product, service, or benefit. While the Principal is the entity that will deliver the product, service, or benefit.
Cargo Insurance
What are the types of Marine Cargo Insurance Policy?
Types of Marine Cargo Insurance:
- Inland Marine Cargo Insurance - This policy is designed to cover cargo movements by land, usually via commercial trucks or similar conveyances
- Inter-Island Marine Cargo Insurance - This policy is designed to cover cargo movements on-board ships or vessels designed for interisland voyages usually within sheltered waters.
What are the two (2) types of Marine Insurance policy?
Types of Marine Insurance Policy:
- Voyage Policy - a policy that covers a single voyage only.
- Open Policy - a policy whereby the insurer agrees to provide coverage for all cargo shipped by the insured during the policy period.
What are the eligibility criteria for buying Marine Insurance?
Marine insurance can be purchased by any business engaged in the transportation of goods by sea. This can be manufacturers, import/export merchants, buyers, sellers, banks, contractors, and buying agents.
Personal Accident Insurance
Are medical expenses due to illness covered?
No, only accidents resulting to death and bodily injury are covered.
Who can be considered as the Insured’s beneficiaries?
Beneficiaries can be any of the Insured’s immediate family members such as parents, legal spouse, siblings, and children.
What is a pre-existing illness? Is this covered?
Pre-existing illness is defined as any illness or medical condition already affecting the Insured, whether known or unknown before the effectivity date of the insurance coverage. Hence, Corporate Guarantee does not cover losses attributable to pre-existing illness.
Fire Insurance
Who may insure?
Building owners and tenants who have insurable interest over the properties that they want to insure.
What happens if the insured property is underinsured?
According to the Average Clause, if at the time of the loss, the value of the assets is insured for less than their full value, the insured is required to bear a proportion of the loss. Since the fire insurance policy is a contract of indemnity, the insured cannot claim more than the actual amount of loss caused by the fire.
What happens if the insured property is over insured?
According to the Open Policy Clause, at the time of the accident, the damage to the property shall be subject to ascertainment and the maximum liability of the insurer shall be limited to the amount of losses incurred.
Can we insure all the contents of the building?
No, this insurance policy excludes cash, jewelry, gadgets, and works of art
Is Fire Insurance a protection against fire only?
No. Under the Fire Insurance Policy, the insured may choose to get protected against typhoons, floods, earthquakes, water damages, sprinkler leakages, robbery and burglary, and etc.
