The Insurance Commission has released the rules guiding the sale of cheaper health insurance and pre-need products to better protect consumers.
In separate circulars, the Insurance Commission listed down what must be the key features of Micro Pre-Need products as well as what came out with the regulations covering health microinsurance or MicroHealth products.
For education, memorial and pension plans under Micro Pre-Need, the maximum gross contact prices computed on a daily basis should not exceed 7.5 percent of the daily minimum wage rate for non-agricultural workers in Metro Manila, or about P34.
The maximum benefit—or the total education benefit for education plans, plan value for memorial plans, and maturity benefit for pension—must not exceed 1,000 times the daily minimum wage rate for non-agricultural workers in Metro Manila, the regulator added.
The Insurance Commission also ordered claims for Micro Pre-Need contracts to be settled within 10 working days upon receipt of complete documentation by the pre-need provider.
Separately, the Insurance Commission said products to be introduced as MicroHealth should broaden the insurance coverage of eligible illnesses and accident-related injuries; increase access to health financing services to cover appropriate drugs, medical supplies and transportation; enhance the benefit package of the insured; and reduce out-of-pocket expenses.
Insurance Commissioner Emmanuel F. Dooc earlier said that from about 30 million Filipinos covered by microinsurance policies as of end-2015, microinsurance penetration is expected to reach up to 50 million in the next two to three years. At end-2015, a total of 38 million Filipinos were covered by insurance.
The Philippines is widely regarded as a model in microinsurance penetration.