THE Philippine Insurers and Reinsurers Association (PIRA) encouraged motorcycle owners to disclose their use of the vehicle for delivery, and warned of delayed claims processing times for accident damage if the information is not provided.
PIRA Executive Director Michael F. Rellosa said in a phone interview Wednesday that insurers taken longer to evaluate damage claims when owners do not disclose their planned use for the vehicle.
“Since delivery workers are more often out on the road, they have a higher risk of accidents that may require higher premiums,” Mr. Rellosa said.
He said these could exceed the typical insurance premium of P300 for coverage of P100,000. Such policies are required for motorcycle-related damage beyond the Compulsory Third Party Liability cover, which only covers death or injury to the passenger.
Mr. Rellosa said complete declarations for motorcycles intended for delivery use becomes more critical as more riders gravitate to the logistics industry.
“By doing so, insurers will not need a lengthy review of the policy and adjust its terms to truly reflect the risks on the insurer and the necessary support to the motorcycle owners. The responsibility for adequate protection and ease of service lie with both parties,” he said.
PIRA expects the sales of motorcycles to be stable as the economy reopens.
“Restrictions are still being imposed to prevent the spread of the coronavirus disease 2019 and because consumers prioritize immediate needs such as food,” Mr. Rellosa said.
The Association of Southeast Asian Nations Automotive Federation reported that production of motorcycles and scooters in the Philippines dropped 60% year on year to 233,948 units in the first half. The government had imposed restrictions on motorcycle riders carrying passengers to help curb the coronavirus. — Kathryn Kristina T. Jose