Claims Control Clause
Insurance Circular Letter No. 2016-08, issued on February 22, 2016, mandates that all insurance and reinsurance companies in the Philippines must not include the Claims Control Clause in new or renewal reinsurance transactions. This directive arises from the observation that such clauses conflict with Section 249 of the New Insurance Code, which sets the timeframe for payment of claims for loss or damage. The Insurance Commissioner, Emmanuel F. Dooc, emphasizes the requirement for strict compliance with this regulation.
February 22, 2016
INSURANCE CIRCULAR LETTER NO. 2016-08
Supersedes: CL No. 16-96
| TO | : | All Insurance/Reinsurance Companies Authorized to do Business in the Philippines |
| SUBJECT | : | Claims Control Clause |
It has been observed by this Commission that some insurance companies doing business in the Philippines have been incorporating the Claims Control Clause in their reinsurance treaties and/or facultative reinsurance agreements,
As said clause is inconsistent with the provisions of Section 249 of the New Insurance Code prescribing the period within which a claim for loss or damage should be paid, it is hereby required that all new/renewal reinsurance transactions, whether treaty or facultative, shall not be subject to the said clause.
For strict compliance.
(SGD.) EMMANUEL F. DOOCInsurance Commissioner