QuestionsQuestions (CUSTOMS MEMORANDUM ORDER 29-2005)
It amends the Insurance Act to require that any policy condition limiting the time to sue under an insurance policy may not be less than one (1) year from the time the cause of action accrues.
It amends Chapter One of Act No. 2427, known as the “Insurance Act,” by inserting a new Section 61-A.
It inserted Section 61-A providing that any condition, stipulation, or agreement in any insurance policy limiting the time to commence an action to less than one year from accrual of the cause of action is void.
At least one (1) year from the time the cause of action accrues.
It starts “from the time when the cause of action accrues.”
The clause is void—meaning it has no legal effect.
It covers “any condition, stipulation or agreement” in an insurance policy limiting the time to commence an action.
No. Under Section 61-A, a limit of less than one year is void.
Yes. The prohibition is only against limiting the time to less than one year; a longer period (e.g., two years) is not within the voiding condition.
The offending policy condition has no legal force and cannot be used to bar the insured’s action.
Section 61-A specifically voids policy terms shortening the time to sue to less than one year from accrual; it does not necessarily override other applicable statutory rules on prescription, but it prevents contractual shortening below one year.
It takes effect on its approval—December 1, 1933.
Section 61-A.
It demonstrates how Philippine law limits insurers’ ability to contractually shorten the time to sue, protecting insureds from unduly short periods and invalidating such clauses.
The clause should be declared void under Section 61-A, so the defense should fail insofar as it relies on the shortened contractual period.
The one-year minimum period is measured from the time the cause of action accrues; thus, the accrual event determines when the insured may begin counting the period.