Third Party Liability Insurance
Analysis of a Contract
The insurance contract analyzed has the following elements.
The elements of a Policy of Insurance, in accordance with Article 51 of the
Insurance Code, are the following.
Parties, Amount of Insurance, Rate of Premium, Property or Life Insured, Interest
of the insured in the property if he is not the absolute owner, Risk insured
against, Duration of Insurance
Parties
Insurer: Travellers Insurance Surety Corporation
Insured: Lilia F Sareno and Tonifranz F Sareno
Beneficiary: Third Parties
Amount of Insurance
The policy is an open policy. The limit of liability is P100,000.
Rate of Premium
P660.40
Property Insured
Motor Vehicle Toyota Vios 2014, with plate number AAK 9919.
Interest of Insured on Property
Insured are the absolute owners of the property insured
Risk Insured Against
Liability to Third Parties
Duration of Insurance
From October 1, 2016 to October 1, 2017
This policy was required by the Land Transportation Office when the owner was
trying to renew the registration of the motor vehicle. This contract is also known
as a Compulsory Motor Vehicle Liability Insurance (CMVLI).
Special Clauses
A. No-Fault Clause A clause that allows the victim (injured person or heirs
of the deceased) to an option to file a claim for death or injury without the
necessity of proving negligence or fault, provided the following proofs of
loss under oath are submitted:
1. Police report of accident
2. Death certificate and evidence sufficient to establish proper payee
3. Medical report and evidence of medical or hospital disbursemen
The total indemnity in such a case is P15,000. It may only be made against one
motor vehicle oly.
In the contract under analysis, the no-fault clause is located in Section II.
The Company will pay any claim for bodily injur and/or death to any
THIRD PARTY without the necessity of proving fault or negligence of any
kind, provided that,
(a) The total indemnity in respect to any one THIRD PARTY shall not
exceed Fifteen Thousand Pesos, subject to the foregoing
Schedule of Indemnities in case of death or physical injury,
without prejudice to the claimant from pursuing his claim
further, in which case he shall not be required or compelled by
the Company to execute any Quit Claim or document releasing it
from liability under the policy of insurance.
(b) The following proofs of loss, when submitted under oath, shall
be sufficient evidence to substantiate the claim:
(i) Police report of accident or any evidence sufficient to
establish the accident, and
(ii) Medical report and evidence of medical or hospital
expenses and/or,
(iii) Death Certificate and evidence sufficient to establish
the proper payee.
B. Authorized Driver Clause - The clause means that it indemnifies the
insured owner against loss or damage to the car but limits the use of the
insured vehicle to the insured himself or any person who drives on his
order or with his permission.
In the contract under analysis, the authorized driver clause is in the first page.
AUTHORIZED DRIVER:
Any of the following: (a) The Insured
(c) Any person driving on the Insureds order or with his
permission.
And on section
