CMVLI premium to rise 53% for business vehicles
The Insurance Commission (IC) plans to raise by as much as 53 percent the premiums on the compulsory motor vehicle liability insurance (CMVLI) on vehicles that are used for business.
The regulator has put the plan on paper and is asking industry players for their comments on the draft circular.
The IC said there was a “need to review the adequacy of rates” because the limit of liability shall again double to P400,000.
This would be just a year and a half since the liability limit was doubled to P200,000 in early 2024. However, premiums have not been raised since 2006.
Based on the draft circular, total premiums for the CMVLI of air-conditioned tourist cars will go up by 53.3 percent to P1,134.49 from P740.
Similarly, premiums for taxi, public utility jeepneys and minibuses will rise by 53.3 to P1,686.40 from P1,100.
Meanwhile, premiums for public utility buses and tourist buses will go up by 12.6 percent to P1,632.27 from P1,450.
On the other hand, there will be no change in the premiums for motorcycles, trailers and tricycles (P250); private cars (P560); light and medium trucks (P610); and heavy trucks (P1,200).
These prices are for one-year coverage. They include the 12.5-percent documentary stamp tax, 12-percent value-added tax and the local government tax. The last one is typically 0.75 percent, but it varies depending on the local government unit.
For a three-year coverage, total premiums for air-conditioned tourist cars will go up by 53.3 percent to P3.250.16 from P2,120.
Similarly, premiums for taxi, public utility jeepneys and minibuses will rise by 53.3 to P4,829.26 from P3,150.
Meanwhile, premiums for public utility buses and tourist buses will go up by 12.6 percent to P4,671.64 from P4,150.
On the other hand, there will be no change in the three-year premiums for motorcycles, trailers and tricycles (P720); private cars (P1,610); light and medium trucks (P1,750); and heavy trucks (P3,440).
