Predicting the unpredictable: A study on the feasibility of implementing a nationwide mandatory earthquake insurance policy

• Main Authors: Abadilla, Apple May P., Lanting, Michaela D.
• Format: text
• Published: Animo Repository 2014
• Subjects: Earthquake insurance > Philippines; Earthquake insurance > Law and legislation > Philippines; Insurance Law
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/5616
• Institution: De La Salle University

Certainly, it is incontestable that natural disasters result to severe economic and social damage to many nations especially in the Philippines. Since the country lies in the Pacific Ring of Fire, Filipinos face a lot of natural calamities every year, particularly earthquakes. Just recently, a magnitude 7.2 earthquake struck Bohol leading to massive damage not just therein, but also in other neighboring provinces in the Visayas region.Due to the vast devastation caused thereof, the national government failed to immediately provide the necessary aid to the public and also to the destroyed entities. Unfortunately, the Philippines do not have a law protecting the properties of its citizens in the aforementioned event. The insurance that is followed particularly the fire insurance is in question, as it is perceived that an earthquake insurance is only and add-on or it is not as important as fire insurance. Also, the effect of an earthquake to the economy is taken into consideration. It is the main reason why the police power of the government will be observed in the implementation of the mandatory earthquake insurance.This study addressed the said issue by looking into related Philippine laws, particularly the Insurance Code, National Building Code and discussions in order to share some insight about the possible solution to the unpredictable disaster that the Philippines encounter. Furthermore, the researchers also compared the situation of the different countries and how they responded when faced with disasters particularly earthquakes.The study proved that mandatory earthquake is violative of the equal protection clause under the 1987 Constitution and the Universal Declaration of Human Rights. Hence, the researchers therefore concluded that the requirement of earthquake insurance is mandatory for commercial structures and establishments that are classified under group E to group I, as stated under the National Building Code of the Philippines. This conclusion is grounded on the law that the powers of the local government must be liberally interpreted and it has the right to promote the general welfare of its constituents by taking the lead in providing basic services.