Title
Revised fire tariff and penalties, 1998
Law
Ic Circular Letter No. 13-97
Decision Date
Nov 6, 1997
The revised fire tariff, effective January 1, 1998, mandates compliance with new rates and regulations, imposing escalating penalties for violations, including fines, suspension, and potential revocation of fire insurance licenses.

Law Summary

Requirements for Compliance

  • Insurance entities must follow the prescribed fire tariff without deviation.
  • Rates and regulations in the tariff manual are binding and form the basis for fire insurance policy premiums and terms.

Penalties for Violations

  • The law imposes escalating penalties for breach of the prescribed fire tariff rules:
    • First Offense: A fine of PHP 500.00 per day for each policy involved, accompanied by a stern warning.
    • Second Offense: Suspension of the license to write fire insurance for a period of fifteen (15) days.
    • Third Offense: Revocation of the license to write fire insurance, effectively prohibiting the insurer from engaging in fire insurance business.

Enforcement and Authority

  • The Insurance Commissioner is vested with authority to enforce compliance and impose penalties.
  • The circular letter serves as an official directive to all affected parties to adhere to the revised tariff and uphold regulatory standards.

Legal Effectiveness

  • The directive was adopted and promulgated on November 6, 1997, formalizing its effectivity and enforceability.
  • This regulatory framework ensures uniformity and fairness in the fire insurance market, protecting both insurers and insured parties by maintaining standardized pricing and practices.

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