Title
Use of Traffic Accident Report for Motor Claims
Law
Circular Letter No. 2018-10
Decision Date
Feb 6, 2018
Insurance Circular Letter No. 2018-10 allows non-life insurance companies in the Philippines to use Traffic Accident Investigation Reports as an alternative to Police Reports for processing motor insurance claims in Metro Manila, Metro Cebu, and Metro Davao, provided certain criteria are met.

Coverage: who and what it applies to

  • Section 1 covers all Non-Life Insurance Companies offering motor insurance.
  • Section 5 limits the use of a Traffic Accident Investigation Report as an alternative to a Police Report only for qualifying motor claims.
  • The covered motor vehicle accidents must arise from the operation of a motor vehicle in public highways, roads and streets in:
    • Metro Manila,
    • Metro Cebu, and
    • Metro Davao.
  • The alternative report applies only where traffic enforcement officers, personnel, or constables specified in Section 4 are exercising their regular duty as such.

Definition of Traffic Accident Investigation Report

  • A Traffic Accident Investigation Report is a document prepared by an Authorized Person under Section 4.
  • The report must be prepared as part of the Authorized Person’s regular course of duty.
  • The report must investigate a motor vehicle accident resulting in:
    • bodily injury to any party, or
    • loss of or damage to the property of any person.
  • The report is prepared as one of the requirements to substantiate an insurance claim.

Minimum contents of the report

  • Section 3 requires that the Traffic Accident Investigation Report contain the following minimum information:
    • the time, day, month, and year of the accident;
    • information adequate to identify the location of the accident;
    • identifying information for all involved parties and witnesses, including:
      • name, age, sex,
      • complete address,
      • telephone number,
      • vehicle ownership and registration,
      • proof of insurance, and
      • name of insurer;
    • a narrative description of the facts of the accident;
    • a simple diagram of the scene of the accident;
    • traffic violation, if any;
    • photographs;
    • available closed circuit television (cctv) footages; and
    • the investigating officer’s name, agency, and identification number;
    • an attestation of the parties involved in the accident; and
    • an attestation by the person preparing the traffic accident investigation report;
    • such other matters relevant to the preparation of the report.

Who may prepare the report

  • Section 4 limits report preparation to Traffic Officers, Personnel, or Constables of:
    • the Metro Manila Development Authority, or
    • Traffic Bureau(s) or its equivalent of local government units.
  • The authorized traffic officers, personnel, or constables must be duly certified by the Land Transportation Office (LTO).
  • The LTO certification must confirm that the authorized person:
    • has undergone, completed, and passed the necessary course for Traffic Accident Investigation Reporting.

When the report may replace a Police Report

  • Section 5 provides that the Traffic Accident Investigation Report shall be used only as an alternative to Police Report in processing insurance claims for motor vehicles resulting in:
    • bodily injury to any party, or
    • loss of or damages to the motor vehicle or property.
  • The claims must arise from the operation of a motor vehicle on public highways, roads and streets in Metro Manila, Metro Cebu and Metro Davao.
  • The alternative is applicable only when traffic officers, personnel, or constables under Section 4 exercise their regular duty.
  • Section 5 excludes claims arising from:
    • fire,
    • external explosion,
    • self-ignition,
    • lightning,
    • burglary,
    • housebreaking,
    • theft,
    • malicious act,
    • claims “whilst in transit,” and
    • claims “for death or injury to any passenger or third-party” under Section 391 of The Insurance Code, as amended by Republic Act No. 10607.
  • For excluded claims falling under the Section 391 “no fault” framework, the claim is paid without the necessity of proving fault or negligence of any kind and a Police Report is not required to substantiate the claim.
  • Non-life insurance companies remain permitted to adjust their claim-substantiation requirements:
    • They are not precluded, based on sound business judgment, from relaxing requirements to substantiate insurance claims.
    • They must not do so in a way that results in stricter or more cumbersome requirements in processing motor insurance claims.

Effectivity and compliance timing

  • Section 6 provides that Circular Letter No. 2018-10 takes effect immediately.
  • The circular mandates “strict compliance” upon effectivity.
  • The Insurance Commissioner issuing the circular is DENNIS B. FUNA (signature shown on February 06, 2018).
  • The circular includes an attachment labeled ANNEX AAA, addressing the application of Traffic Accident Investigation Report use vis-à-vis Police Report.

Cross-referenced claims framework

  • The attachment explains application under:
    • Third Party Liability (TPL) including bodily injury including death.
  • The attachment also identifies No Fault Cause under Section 391 of the Insurance Code, as amended.
  • The attachment categorizes motor claims involving:
    • Loss & Damage,
    • Carnapping, and
    • Damage to property.
  • The attachment further includes categories for:
    • Extended Third Party Bodily Injury, and
    • Extended Third Party Property Damage.

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