Insurance Code (Presidential Decree 612)

Philippines

(enacted in 1974)

Insurance Code (Presidential Decree 612) of 1974 governs the insurance industry in the Philippines.

Many microfinance institutions in the Philipines have made micro insurance available to their members. The Insurance Commission seeks to promote the importance of microinsurance through the Insurance Code by defining the features of microinsurance and ensuring that the delivery of microinsurance services are safe. Pursuant to this objective, the Insurance Commission created a two-tiered insurance system: one for insurance companies and the other for providers of microinsurance called Mutual Benefit Associations (MBAs). The Code provides a specific legal framework for MBAs in Chapter VII of the Code.