September 26, 2023

Saluti Law Medi

Rule it with System

Motor Motor vehicle Coverage is Necessary

Pricey PAO,

I a short while ago acquired a car or truck, and I was advised that I should really have a motor automobile insurance coverage. In this link, may possibly I know if this is necessary or a issue of choice? Following all, obtaining this kind of a matter would entail a further expenditure on my aspect. Thank you in advance for the clarification.


Expensive Jordan,

Remember to be encouraged that there are unique kinds of coverage for a motor automobile. Notably, a single of which is the Compulsory Motor Car Liability Insurance policies. For your guidance, Segment 387 of Republic Act 10607, usually recognized as the “Coverage Code,” dictates that it shall be unlawful for any land transportation operator or operator of a motor automobile to work the very same on the general public highways except there is in drive a motor auto legal responsibility insurance coverage, viz:

“Portion 387. It shall be illegal for any land transportation operator or proprietor of a motor vehicle to run the very same in the community highways unless of course there is in force in relation thereto a policy of insurance policy or guaranty in dollars or surety bond issued in accordance with the provisions of this chapter to indemnify the demise, bodily injuries, and/or harm to residence of a third-party or passenger, as the case may be, arising from the use thereof. (Emphasis and underscoring supplied)

In connection with the foregoing, the law additional states that the Land Transportation Workplace shall not enable the registration or renewal of registration of any motor car or truck without the need of very first complying with the Compulsory Motor Automobile Legal responsibility Insurance policies. For brevity, Sections 389 and 390 of the Insurance policy Code go through:

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“Section 389. The Land Transportation Office shall not let the registration or renewal of registration of any motor vehicle without having very first necessitating from the land transportation operator or motor automobile proprietor concerned the presentation and filing of a substantiating documentation in a variety authorised by the Commissioner evidencing that the policy of insurance plan or guaranty in money or surety bond essential by this chapter is in impact.

“Segment 390. Just about every land transportation operator and each and every owner of a motor auto shall, right before making use of for the registration or renewal of registration of any motor auto, at his alternative, possibly protected an insurance policy or surety bond issued by any insurance coverage company approved by the Commissioner or make a funds deposit in this sort of sum as herein expected as restrict of liability for uses specified in Segment 387. x x x. (Emphasis and underscoring supplied)

Consequently, aside from not being registered or renewed, any land transportation operator, proprietor of a motor auto, or any other particular person violating the required necessity will be fined and/or imprisoned, to wit:

“Part 401. Any land transportation operator or operator of motor auto or any other individual violating any of the provisions of the preceding sections shall be punished by a fantastic of not less than 5 hundred pesos (P500.00) and/or imprisonment for not extra than 6 (6) months. The violation of Segment 390 by a land transportation operator shall be a adequate result in for the revocation of the certification of community usefulness issued by the Land Transportation Franchising and Regulatory Board masking the car involved.

“Part 402. Each time any violation of the provisions of this chapter is fully commited by a company or affiliation, or by a government business or entity, the govt officer or officers of mentioned corporation, association or governing administration place of work or entity who shall have knowingly permitted, or unsuccessful to reduce, mentioned violation shall be held liable as principals.” (Emphasis and underscoring supplied)

In sum, though there are diverse types of motor car insurance coverage based on the risk and coverage, it should be remembered that we have a minimum amount and required kind of motor automobile insurance policy that is not just a make a difference of desire. Usually, one’s failure to comply with the higher than-said bare minimal might not only entail non-registration or non-renewal, but worst of all, may well issue the latter to a good and/or imprisonment.

We hope that we were being capable to respond to your queries. Make sure you be reminded that this suggestions is primarily based solely on the details you have narrated and our appreciation of the exact same. Our feeling may perhaps vary when other points are adjusted or elaborated.

Editor’s observe: Expensive PAO is a daily column of the Community Attorney’s Place of work. Issues for Main Acosta may possibly be sent to [email protected]