Question & AnswerQ&A (Republic Act No. 1481)
Republic Act No. 1481 is an amendment to Act Numbered 2427, known as The Insurance Act, which makes it obligatory for fire insurance policies (except residential) to include a clause on prima facie evidence of arson.
Section 164-A requires insurers to insert a clause in fire insurance policies (except residential buildings) that establishes prima facie evidence of arson based on specified circumstances.
No, the insertion of the prima facie evidence of arson clause is not obligatory for insurance policies for residential buildings or buildings used purely for residential purposes.
Prima facie evidence of arson is constituted by the concurrence of at least one circumstance from paragraph one (such as suspicious fire origins or presence of inflammable materials) with any circumstance from paragraph two (such as insurance amount exceeding 70% of value or fire occurring within three months from the policy date).
Yes, circumstances include fires starting under suspicious conditions with inflammable materials found shortly after the fire, multiple fires breaking out simultaneously in different parts, more than two fires occurring within three months at the same premises, and storage of inflammable materials violating policy conditions.
Circumstances include total insurance exceeding 70% of property value, significant withdrawal of insured goods shortly before the fire (not in ordinary business course), and the fire occurring within three months from the policy date.
If the total insurance coverage on the property exceeds seventy percent of its value, it is a circumstance that, combined with suspicious fire origins, constitutes prima facie evidence of arson.
Inflammable materials such as gasoline or rags soaked in combustibles must be found within 12 hours after the fire in the presence of a police officer or firefighting officer investigating the fire.
The Act took effect upon its approval, which was on June 16, 1956.
It legally establishes evidence that can presumptively prove arson in the event of suspicious fires, giving insurers a legal basis to investigate and possibly deny claims related to intentional fire damage.