Philippine Life Insurance Association (PLIA) President Benedict Sison made this statement on the Bicameral Committee’s 60-day grace period compromise provision in the “Bayanihan to Recover as One Act”:
PLIA finds the Bicameral Committee’s 60-day grace period compromise provision in the “Bayanihan to Recover as One Act” acceptable. It is equivalent to the minimum grace period granted by the industry during the ECQ declaration in March, representing the 30-day policy contractual grace period and the extension that the Insurance Commission had encouraged companies to implement.
PLIA recognizes the difficulties policyholders may have in settling their due premiums in these trying times. The 60-day period offers a balanced consideration of the insuring public’s interest as well as that of the insurance companies, who themselves need to ensure their continued ability to service all their commitments to their policyholders.
However, exempting insurance companies from this 60-day mandatory grace period would also turn out beneficial to our policyholders as steadier premium inflow would become available for investing and generating returns that would assure their readiness to respond to claims especially those related to COVD-19.
At this time when people’s health and wealth are a bit more vulnerable, the role of the insurance industry becomes even more important as it helps people mitigate the risks they face. Thus, it is also important that we work towards a balanced solution that would ease the plight of our fellow Filipinos while also ensuring the continued stability of the industries that are there to help them.