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| How
do I know how much to insure my car or house? |
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| Automobiles
have a very short economic life span, usually 5 years. In the
Philippines, insurers allow up to a maximum of 8 years, thus,
depreciation rate is usually up to 20% on the first year with
the balance spread out up to eight years. For example, a car
sold brand new in 1995 for a value of 350,000 can have a depreciated
value of 280,000 after one year and further depreciate by about
11.5% for each year thereafter so that the same car by 1999
will have a depreciated value of 195,000.
For the house, the value is dependent upon the following
factors:a.Original cost of construction b.Improvements added,
if any c.Current replacement cost d.Age of building. The economic
life span for buildings of superior construction is usually
50 years, thus, depreciation is allocated at 2% per year.
Replacement cost, however, is determined by adjustments in
the price index for construction materials. When depreciation
is deducted from replacement cost, sound value is achieved.
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| When
I sell my house or car, can the existing insurance be transferred
to the new owner? Why? How? |
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| Not
automatically. While the insurable interest of the owner can
be transferred, the contract of insurance requires advice to
and acceptance of the insurer for the insurable interest to
be completely transferred. The insurer can exercise each option
to decline such transfer of insurable interest. If the insurer
accepts, the transfer is usually done by endorsement. It is
more ideal, however, to have a new policy written for the new
owner. |
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| What
are the major factors that affect the price of my house insurance?
|
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| The
fire rate is dependent upon construction, occupancy, location,
and exposures of the risk. |
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| What
are the steps and documents involved in filing a motor car claim? |
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| After
an accident, an insured shall be required to submit: |
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a. |
Police
Report and Affidavit of the insured's driver recounting the
circumstances of the accident |
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b. |
Certificate of Registration
and Official Receipt of the vehicle |
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c. |
Driver's License
and Official Receipt |
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d. |
Photographs reflecting
the Damages of the involved vehicle (Plate Number must be visible) |
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e. |
Stencil of the Vehicle
Motor and Serial/Chassis Numbers |
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f. |
Repair Estimates
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g. |
Certificate of No
Claim (by Third Party Claimant, if any) |
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h. |
During the initial
processing of motor car claims, the problem of determining whether
who is at fault has to be established and, therefore, we require
the affidavit of the insured's drivers for the following reasons: |
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- When liability is clear on the part of the adverse vehicle's
driver - This is vital when filing a subrogation case in
court against the adverse driver/party at fault;
- When it is unclear on who is at fault between or among
drivers involved - This would protect the insured (or Paramount
Life & General Insurance Corp., when payment of claim
has already been made by the insured) against illegitimate
claims by adverse third parties.
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