The Insurance Commission will no longer require parties with claims of up to P200,000 to go to court and allow them instead to settle the amount through a position paper.
Insurance Commissioner Emmanuel Dooc told reporters the agency would ease the procedures on small insurance claims.
“One of our scholars has adopted a study which he calls the rule of procedure for small claims cases. This involves claims that does not exceed P200,000. In this proposal, a claimant, all he needs to do is to submit a position paper in writing. [No more heqrings from us,” Dooc said.
“Then the other side will also submit a position paper, and will evaluate it. So the concerned parties, particularly the victim, can expect immediate and quick resolution of the claim,” he added.
The IC issued Memorandum Circular 2016-01, which prescribes the ruling for the procedures for small claims cases.
Deputy Insurance Commissioner Dennis Funa said the objective is to expedite the decision of cases from years to few months.
“As you know if it will take a long time, it is to the detriment of the policyholders if (they are) made to wait for a number of years. So with this procedure, hopefully we’ll be able to settle it within a few months, for the benefit of the policy holders,” Funa said.
Aside from the faster settlement of claims, the new procedure will also acquire less cost for both the claimant and the insurance party.
“[This will be] with less cost, because you don’t have to seek for a hearing, represented by a lawyer, but of course you can request for assistance from a lawyer to help prepare your position paper,” Dooc said.
Under the issuance, however, a lawyer fee will be charged to the claimants. Those who will be claiming less than P100,000 will have to pay P1,000 pesos and those higher than P100,000 but less than P200,000 will have to pay P2,000.
“Plus an amount equivalent to one percent (1o/o) of the filing fee but in no caselower than Ten Pesos (P10.00) to be collected as Legal Research Fund Fee inaccordance with R.A. No. 3870, as amended by Presidential Decree No. 1856 dated December 26, 1982,” the order read.
The order will take effect on Sept 1.