SOP Library
SOP NO:
FS-IM01
(List of Exhibits/Attachments)
Missi
on
:
Finance and Administration
Area:
Financial Services (FS)
Activity:
Insurance Management (FS-IM)
Title:
Property Insurance System
Date Approved/Issued:
08/01/1990
Date Effective:
08/01/1990
Digest:
I. TERMS OF REFERENCE
A. Rationale
B. Objective
C. Scope
D. Basis
II. IMPLEMENTING GUIDELINES
A. Nature of Insurance
An insurance policy is a contract between NFA and the insurance company whereby the latter assumes an obligation to reimburse NFA for an amount not exceeding the sound value of the property lost or damaged thru fire, marine, typhoon, flood, earthquake and other allied risks. However, this indemnity shall in no case exceed the amount stipulated in the contract, that is, the face of the policy. In order that the contract may be valid, NFA must have an insurance interest and the element of indemnity must exit.
Insurance coverages for properties may be classified as follows:
1.
Marine Insurance
- refers to coverage while properties are shipped from one point to another on board vessel or barge.
2.
Property Insurance
- refers to NFA properties situated all over the country such as warehouses and buildings, furnitures and fixtures, office equipment, machineries and miscellaneous properties covered under a fire insurance policy.
3.
Vehicle Insurance
- refers to insurance coverages on all types of NFA vehicles.
B.
General Policies
1. All NFA properties (minimum value of P1,500.00) shall be covered by an insurance to indemnity or compensate NFA for damages or losses of these assets due to fire, marine, flood, typhoon, earthquake and other allied risks.
2. Insurance coverages for all NFA properties whether marine, vehicle or property fire insurance shall be contracted with the Government Service and Insurance System (GSIS) by the Administrator in behalf of NFA. All terms, clauses and conditions stated in the insurance policies shall be strictly followed except when both parties, NFA and the insurance company, agree to extend or to alter such terms, clauses and conditions.
3. The Director of GSD/Regional Director/Provincial Manager shall be responsible i
n
safeguarding NFA investments in all its assets by assuring that all NFA properties, wherever they may be located, are adequately covered by an insurance and that claims for
any damages or losses suffered are filed accordingly.
4. The General Services Directorate shall be responsible for consolidating all pertinent data/documents required for the filing of formal insurance claims and forwarding the same to DTFM for billing purposes.
5. The Directorate for Treasury and Fund Management (DTFM) shall be responsible for the preparation of the bills and filing of the formal insurance claims on damages/losses on properties with the GSIS. Copy of the bill and xerox copies of supporting documents shall be furnished to COAD-DAB for record purposes.
6. CD-DTFM shall be responsible for following up insurance claims filed with the GSIS. All developments related to insurance claims shall be communicated by DTFM to GSD for information and/or appropriate action.
7. Denied insurance claims shall be endorsed to the legal officers by DTFM/Accounting Units for appropriate legal actions, copy furnished GSD. If denial on insurance claims is found to have legal grounds, a write off of the insurance claims shall be effected. Copies of the documents shall be endorsed by DELA/legal offices to COAD-DAB/Accounting Units to take up the write-off in the books.
If grounds on the denial of insurance claims were due to the negligence of concerned officer and employee in the performance of their duty then, they shall be held liable for the total amount of damage/loss suffered by NFA. Payment of damages/losses shall be without prejudice to the right of NFA to file administrative and/or criminal charges against the erring personnel.
8. In cases of damages/losses suffered from shipments which were not insured due to the negligence of concerned officer and employee in the performance of their duty, the personnel responsible for the non-coverage of the shipment shall be held liable for the total amount of loss/damage incurred. Likewise, payment of damages/losses shall be without prejudice to the right of N/FA to file any administrative and/or criminal charges against the erring personnel.
9. It should be the responsibility of the NFA official and/or employee concerned
(F.O/GSD/DTFM) to retain file/xerox copies of all documents pertaining or related to insurance coverages and/or claims endorsed/furnished to the GSIS. Insurance adjuster and other concerned parties. Receipt of the documents must be duly acknowledge by the recipient person on the file/Xeroxes copies retained.
10. Subsequent renewal of insurance coverages for NFA properties excluding motor vehicles shall be authorized by the GSD Director. Renewal of motor vehicle insurance shall be authorized by the Director GSD (C.O.)Regional Director/Provincial Manger (F.O.).
11. Violations of any of the policies stated on this SOP shall subject the erring personnel to Administrative and/or charges as warranted.
C.
Marine Insurance
1. All property shipments shall be covered by an open marine insurance policy with a maximum automatic insurance liability limit of P30 million for local shipments and P100 million for Property importations.
An open marine insurance policy refers to an automatic insurance coverage for NFA
property shipments whether for local transfers or importation with a value not exceeding the
maximum insurance liability limit.
2.
Insurance Coverage
2.1 The Property and Supplies Management Division (PSMD) of the General Services Directorate shall be responsible for securing marine insurance coverage for all local and importation shipments of properties.
2.2 The data required to cover property shipments shall be as follows:
For local shipments
a. Bill of Lading number
b. Quantity/item/description of property
c. Total cost/value of property
d. Serial number
e. Place of origin and destination
f. Name of carrying vessel
g. Estimated time of departure and arrival
For importations
a. Opening bank
b. Letter of credit number
c. Quantity/item/description of property
d. Quantity/item/description of property
e. Total cost and freight
f. Serial number
g. Place of origin and destination
h. Name of carrying vessel
i. Estimated time of departure and arrival
2.3 For purposes of marine insurance coverage of inter-island transfers of properties, it shall be the responsibility of the Regional Director/Provincial Manager/OIC to assure that all pertinent information regarding the shipment of properties are furnished to PSD-GSD thru the fastest availabel means at least five (5) days before any shipment is effected. However, all wires on property shipments, whose ETD falls on
Saturday/Sunday/holiday, must reach PSMD-GSD before 12:00 o'clock noon on Friday or on the working day before the holiday.
The Regional Director/Provincial Managers/OIC and the employee concerned shall be
held liable for any uninsured property shipments due to non-transmission of
information to PSMD-GSD in case said shipment incurred damages/losses.
Likewise, the GSD official and employee concerned shall be held liable for any
uninsured shipment due to late or non-declaration of said shipment in case
damages/losses were incurred.
2.4 The PSMD-GSD shall send a letter of requests, with all the pertinent information regarding the intended inter-island transfer/importations of properties, to the GSIS immediately upon receipt of shipment data to formally secure marine insurance coverage.
2.5 The disbursement voucher for the premium payment of the insurance coverage shall be prepared by PSMD-GSD upon receipt of the Certificate of Policies and premium billings issued by GSIS. The disbursement voucher shall be processed thru the usual voucher processing system.
3. Claim for Damages/Losses
3.1 The Property and Supplies Management Division of General Services Directorate shall initiate the filing of insurance claims on marine damaged properties from local shipments and importations with the GSIS.
3.2 For local shipments, the destination province shall be primarily responsible for information PSMD-GSD and the source province of the losses/damages on properties within 24 hours upon identification. For imported properties, the responsibility of informing the source country of the damages/losses shall be
vested upon PSMD-GSD. The required information shall include the following:
a. Estimated cost/value of lost/damaged properties
b. Cause/nature of damage/loss
c. Location of occurence
d. Name of carrying/loss occured
e. Date damage/loss occured
f. Serial number or description of property
3.3 The destination province shall be responsible for filing the provisionary claim with the shipping company within 24 hours upon identification of damage/loss. The bill of lading may serve as the provisionary claim to concerned parties by specifically stating the total damage/loss sufferred to be acknowledged by the Master
of the vessel or the authorized representative of the shipping company.
3.4 The PSMD-GSD upon receipt of notice of loss/damage from the concerned field office shall immediately file/send provisional claim letter to GSIS. The provisional claim letter shall specifically state the following information necessary to facilitate the investigations by the insurance adjuster.
a. Date loss/damage occurred
b. Policy number of insurance covering the lost/damaged properties
c. Estimated cost/value of lost/damaged properties
d. Date of declaration of marine cargo
e. Name of carrying vessel
f. Location of occurence
g. Serial number or description of property
3.5 A formal claim letter shall be filed by the construction party to the Shipping Company immediately upon receipt of notice of loss/damage specifically stating the following information:
a. Location and date of occurence
b. Estimated cost/value of lost/damaged properties
c. Name of carrying vessel
d. Cause/nature of damage/loss
e. Serial number or description of property
Freight claims by the shipping company equivalent to the estimated amount of loss shall be withheld until liability for the damaged/lost properties is estimated in coordination with the insurance adjuster. However, GSD may recommend the full or partial release of freight claims o the shipping company on a case to case basis depending on its initial findings as regard to the liability for the damage/loss suffered.
3.6 Pertinent data/documents shall be furnished to PSMD-GSD by the concerned field office within three (3) months from the time advise of the damage/loss was received to facilitate the filing of insurance claims. The data/documents needed to support insurance claims for marine damaged properties shall be as follows:
For Local Shipment
a. Claim Bill
b. Bill of lading
c. Marine protests filed by the vessel master
d. Pictures of damaged properties
e. Approved Inventory and Inspection Report
f. Certified true copies of Supplier's Invoice of whole shipment insured/
itemized cost of parts missing
g. Copies of formal claims filed against the Shipping Co., Trucking C. and/or
custom's roker and their replies thereto, if any.
h. Short delivery certificate from the customs broker and/or Trucking Co.
i. Certified true copy/xerox copy of Marine Cargo Policy Ednorsement/Cover
Note and/or Risk Note
j. Name and Date of arrival or carrying vessel
k. Proof of loss
l. Turnover Survey Report of Bad Order Cargoes
m. Disposition Proceedings:
1. Minutes of Bidding
2. Notice of Award
3. Authority to withdraw, FAIR
4. Official receipt issued to salvage buyers
5. Disposition report
For Importation
a. Claim Bill
b. Bill of Lading
c. Letter of Credit
d. Marine Protest filed by the Vessel Master
e. Pictures of damaged properties
f. Approved Inventory and Inspection Report
g. Certified true copies of supplier's Invoice of whole
shipment insured/itemized cost of missing parts
h. Copies of formal claims filed against the Shipping Co.,
Customs Arrastre Contractors, Trucking Co., and/or
Customs Broker and their replies thereto, if any.
i. Bad order survey of the Customs Arrastre Contractors
j. Custom's short landed certificate
k. Short-delivery certificate from the Customs Arrastre Contractors
l. Short-delivery certificate from customs Broker and or Trucking
Company
m. Certified true copy/xerox copy of Marine Cargo Policy
Endorsement/Cover Note and/or Risk Note
n. Name and date of arrival of carrying vessel
o. Proof of loss
p. Turnover survey report of bad order cargoes
q. Disposition Proceedings:
1. Minutes of Bidding
2. Notice of Award
3. Authority to withdraw, FAIR
4. Official receipt issued to salvage buyers
5. Disposition report
All required documents must be submitted in four (4) copies.
3.7 The total claims on marine damaged properties shall be computed based on the declared value of the properties upon shipment as covered by the marine insurance less salvage proceeds, ifl any.
The insurance claims against GSIS for abandoned properties shall be the total insured value of the shipment plus other incidental expenses incurred in unloading and warehousing the shipment, if any.
3.8 All pertinent date/documents shall be consolidated by PSMD-GSD and same shall be forwarded to CD-DTFM for the billing and filing of the formal insurance claims with the GSIS. Filing of the formal insurance claim with the GSIS must be made immediately upon receipt/consolidation of all the required supporting documents.
3.9 The total insurance claim as computed by PSMD-GSD and billed by CD-DTFM must be in conformity with the findings of the insurance adjuster as indicated in the latter's confirmation letter on loss/damage incurred and claimable, duly acknowledged by NFA.
3.10 No insurance claim shall be filed without the proper notation and billing of CD-DTFM. Likewise, receipt of insurance claims check collections from the GSIS shall be the sole responsibility of CD-DTFM.
3.11 If the vessel owner/contractor acknowledges damage/loss as his liability, notice or certification shall be sent to PSMD-GSD by the contracting province. Billing for the total cost of lost/damaged properties shall be prepared and sent to the vessel owner by the contracting province in coordination with PSMD-GSD. Any outstanding freight claims against NFA by the vessel owner/contractor shall be applied to the account. Insurance claims for the lost/damaged properties from the insurance company shall be waived upon receipt of payment from the shipping company.
4.
Disposition of Marine Damaged Properties
4.1 All marined damaged properties, the damage of which occured during shipment on board an international or inter-island vessel shall be for the account of NFA if cause of damage was due to an insurable risk as established in coordination with the insurance adjuster. Otherwise, it shall be for the account of the vessel owner.
Marine damaged properties shall be unloaded and stored separately in one place of the NFA warehouse in such a manner as to allow proper identification.
4.2 Any marine damage on properties established to be caused by inefficient maintenance and/or unseaworthiness of the vessel/barge shall be the liability of the vessel owner.
Marine damaged properties established to be the liability of the shipping company shall not be unloaded. The same shall be acknowledged by the vessel master or the authorized representative of the shipping company.
4.3 The destination province shall immediately inform PSMD-GSD of the damaged condition of the properties upon completion of the unloading process. PSMD-GSD shall send a letter of application for abandonement of damaged properties established to have a marine damage occurence of 75% or more of the total shipment to GSIS immediately upon receipt of notice/advice. Prior to the approval of the application for abandonement of the damaged properties, the provincial office concerned shall be responsible for the proper custody of the same.
4.4 The manner of disposition of marine damaged properties shall be dependent upon the result of property survey and inspection to be conducted. Disposition of marine damaged properties shall follow policies and procedures as statedin the revised SOP on the Disposal of Unserviceable Fixed Assets and Materials.
4.5 An Inspection and Inventory Report (IIR) shall be prepared specifying the proper manner of disposition recommended. The disposition of marine damaged properties shall be effected in coordination with COA, and GSIS.
4.6 The provincial office concerned shall notify PSMD-GSD a week before the scheduled date of disposition proceedings to enable PSMD-GSDto advise the assigned insurance adjuster/GSIS and to confirm insurance liability of damaged properties by GSIS to allow NFA to get the best option available. No disposition proceedings shall be undertaken without the presence of the insurance adjuster or any authorized GSIS representative unless a waiver for non-attendance has been issued by the latter.
4.7 The disposition of damaged properties should take place within thirty (30) days upon completion of the unloading process. Prior to actual disposal of marine damaged properties, the provincial office concerned shall be responsible for the proper custody of the same.
5.
Monitoring and Internal Control
5.1 The PSMD-GSD/Property units shall maintain an Insrance Registry Book (Exhibit 1) where all insured properties shall be properly recorded. Insurance claims on damages/losses sustained, forwarded to DTFM for filing/billing shall also be recorded as well as adjustments or cancellations on issued insurance policies.
5.2 Adjustments and/or cancellations from the issued insurance policies shall be made by PSMD-GSD upon receipt of notice from the provincial office concerned regarding the status and conditions of damaged properties.
5.3 A Marine Damaged Property Disposition Report shall be prepared and submitted by the Property Custodian/Supply Officer to GSD within four (4) days after the final property issuance as basis of information on the actual quantity and description of properties withdrawn and for submission to GSIS as supporting document and to facilitate the filing of formal insurance claims.
D.
Property Fire Insurance
1. All NFA properties with a minimum value of P1,500.00, excluding motor vehicles, shall be insured under a regionalized blanket fire insurance policy with typhoon and flood endorsements.
Regionalized Blanket insurance coverage for properties shall mean one fire policy coverage for all NFA properties within the region excluding mortgaged properties and those with high risks wherein separate policy coverage shall be taken.
2.
Insurance Coverage
2.1 The Property and Supply Management Division (PSMD) of the General Services Directorate (GSD) shall be primarily responsible for assuring that all NFA properties are adequately covered by an insurance against all insurable risks.
2.2 The Head of Field Offices shall be responsible for informing/furnishing the PSMD-GSD with the list of newly acquired properties and/or locally purchased/fabricated properties as often as necessary so that the same could be insured.
2.3 The value of fire insurance policy to be taken shall be equivalent to the average fair market value of the properties to be insured as appraised by GSIS. For this purpose, PSMD-GSD shall request GSIS, for an appraisal of all NFA properties as the basis for the insurable value of NFA properties.
2.4 The PSMD-GSD shall send a letter of request to the GSIS to formally secure insurance coverage of the properties together with a complete list of inventory of the properties per region per province showing the following informations:
2.4.1
Warehouse and buildings
a. Name of building
b. Floor area
c. Location
d. Date of acquisition
e. Insurable value
2.4.2
Equipment Machineries, Furnitures and Fixtures
a. Description
b. Quantity
c. Date of acquisition
d. Location
e. Insurable value
2.5 Insurance policies for the coverage of properties shall be reviewed every year and checked against the inventory listings for purposes of determining the properties to be included/excluded in the insurance coverage renewal. A letter of renewal for insurance coverage of properties shall be prepared and sent to GSIS, one month prior to the expiration date of the existing insurance coverage.
2.6 Upon receipt of the Certificate of Policy and premium billings issued by the GSIS, PSMD-GSD shall prepare the disbursement voucher for the premium payments. The disbursement voucher shall be processed in accordance with the usual voucher processing system.
Payment of insurance premiums amounting to P2 M and above shall be made on a quarterly basis.
3.
Claims for Damages/Losses
3.1 The primary responsibility of informing PSMD-GSD of losses/damages on properties
within 24 hours
after its occurence shall be vested upon the concerned Head of Office. The required information shall include the following:
a. Cause/nature of damage/loss
b. Date damage/loss occurred
c. Estimated value of damage/loss
d. Extent of damage/loss
e. Location where damage/loss occurred
3.2 Upon receipt of notice of loss/damage, PSMD-GSD shall immediately file/send a provisional claim letter to GSIS. The provisional claim letter should indicate the following informations necessary to facilitate investigations by the insurance adjuster:
a. Date and place the loss/damage occurred
b. Policy number of insurance covering the lost/damaged properties
c. Estimated value of loss/damaged incurred
d. Cause/nature of damage/loss
PSMD-GSD shall request the Technical Services Directorate (TSD) to verify/prepare an estimated value of loss/damage incurred on properties for the purpose of filing the provisional claim with the GSIS.
3.3 The concerned Field Office shall furnish to PSMD-GSD
within a maximum period of three (3) months
from the time the damage/loss occured, all the pertinent data/documents required to facilitate the insurance claims which will be as follows:
a. Pictures of fire debris
b. Approved Inspection and Inventory Report
c. Inventory list of the properties before the incident occured
d. Fire Department Report (in case of fire)
e. Pag-asa weather report (in case of flood/earthquake)
f. Proof of loss
g. Disposition Proceedings:
1. Minutes of bidding
2. Notice of award
3. Authority to withdraw, FAIR
4. Official receipts issued to the salvage buyers
5. Statement of actual withdrawal of damaged properties
6. List of perspective bidders
7. Copies of Tender forms duly accomplished
8. Disposition Report
All required documents must be submitted in four (4) copies.
3.4 Consolidation of all pertinent date/documents shall be the responsibility of PSMD-GSD and same shall be forwarded to DTFM for billing and filing of formal insurance claims to GSIS. No insurance claim shall be filed without the proper notation and billing of CD-DTFM. Likewise, receipt of insurance claims check collections from GSIS shall be the sole responsibility of CD-DTFM.
3.5 The total insurance claims collectible for damages/losses sustained on properties shall be computed based on the insured value of the property less salvage proceeds, if any, and deductible franchise. The total insurance claims as computed by GSD and billed by DTFM must be in conformity with the findings of the insurance adjuster as stated in the latter's confirmation letter of loss/damages incurred, duly acknowledged by NFA.
3.6 In computing/billing for the net insurance claimable, GSD/DTFM must take into consideration the policy deductible franchise requirements of Fire Insurance Policies which are as follows:
3.6.1 Fire cases - no deductions
3.6.2 Flood cases - 1% of the total insured value of the properties declared of the affected province or a minimum of P1,000.00 and a maximum of P500,000.00.
3.6.3 Earthquake - 2% of the total insured value of the properties declared of the affected province or a minimum of P1,000.00 and a maximum of P1 million.
3.7 Billing and filing of the formal insurance claim with the GSIS must be made immediately upon receipt/consolidation of all the required supporting documents.
4.
Disposition of Damaged Properties
4.1 The PSMD-GSD/Property Custodian/Supply Officer of the field office concerned shall conduct a survey of the damaged properties to determine the manner of disposition and prepares the corresponding IIR.
4.2 Disposition of damaged properties shall follow policies and procedures as provided in the revised SOP on the Disposal of Unserviceable Fixed Assets and Materials.
4.3 The disposition of damaged properties shall take place within thirty (30) days from the occurence of loss/damages. The field office concerned shall notify GSD a week before the scheduled date of disposition proceedings to enable GSDto advise the assigned insurance adjuster/GSIS and to confirm insurance liability of damaged properties by GSIS to allow NFA to get the best option available. No disposition proceedings shall be undertaken without the presence of the insurance adjuster or an authorized representative of GSIS unless a waiver for non-attendance has been issued by the latter.
5.
Monitoring and Internal Control
5.1 For pusposes of updating the list of insured properties as well as updating the Fixed Assets Inventory Records, the Property Custodian/Supply Officer of Field Offices shall inform PMMS-GSD, thru letter or wire, everytime there is a locally purchased or fabricated fixed asset indicating the name and description of the item, date of purchase/fabrication, cost property code number and serial number, if any.
5.2 For purposes of checking whether all properties insurable have been properly insured, an inventory list of fixed assets (purchased and fabricated) duly certified correct by the accountant and noted by the Head of Office, shall be submitted by the Property Custodian/Supply Officer of Field Offices to GSD every end of June and December of each year. The inventory report shall include information on the status/conditions of the asset.
5.3 All insurance coverages for NFA properties shall be properly recorded in the Insurance Registry Book (Exhibit 1) to be maintained by PMMS-GSD. The Registry Book shall provide colmns for the location, insured value, date of coverage and policy number. Likewise, insurance claims filed and settled shall be recorded in the same book.
5.4 The concerned provincial offices shall immediately notify GSD of the status and conditions of damaged properties and submit the required Inventory and Inspection Report for the purpose of adjustments and/or cancellations of issued insurance policies.
5.5 A Damaged Properties Disposition Report shall be submitted by the Property Custodian/Supply Officer to GSD within four (4) days after the final property issuance to serve as basis of information on the actual quantity and description of damaged properties withdrawn and as supporting document for submission to the GSIS to facilitate the filing of formal insurance claims.
E.
Motor Vehicle Insurance
1. All NFA motor vehicles shall be insured against all insurable risks under the motor vehicle insurance coverage.
2.
Insurance Coverage
2.1 The Property and Supply Management Division (PSMD) of the Directorate for General Services (GSD) shall have the responsibility of assuring insurance coverage for all newly purchased/acquired motor vehicles.
2.2 For every new motor vehicle acquisition, PSMD-GSD shall send a letter of request to the GSIS to formally secure insurance coverage giving the following information:
a. Description stating:
1. make and type
2. color
3. model year
4. motor engine
5. cubic capacity
b. Pencil stencil of:
1. motor engine
2. serial number
3. chassis number
c. license and plate number
d. total insurable value
e. place of assignment
f. accessories
g. particulars of purchase such as date of purchase and whether new or second hand
2.3 A copy of the certificate of cover and motor vehicle comprehensive policies shall be transmitted by PSMD-GSD to the Field Offices/motorpool concerned where the vehicle is to be assigned for the purpose of registering the same.
2.4 Renewal of vehicle insurance coverage shall be the responsibility of the Field Office to where the motor vehicle was assigned, with the local GSIS. Renewal of motor vehicle insurance coverage shall be made one month prior to the expiry date of the existing insurance policies.
3.
Claims for Damages/Losses
3.1 The filing of claims for losses incurred on motor vehicles amounting to P5,000.00 and below shall be the responsibility of the concerned Field Office, at the local GSIS office. Insurance claims for damages/losses with an amount of over P5,000.00 shall be the responsibility of GSD/DTFM to be filed with the GSIS main office.
3.2 GSD shall send a notice of the vehicular accident to GSIS within 24 hours upon occurence giving the following information:
3.2.1 Date and Place of occurence
3.2.2 Persons involved in the accident
3.2.3 Nature/Cause of accident
3.2.4 Insurance Policy Number
3.3 GSD shall bring the damaged vehicle to any two motor shops. GSD shall take photographs of the damaged vehicle and stencil the vehicle's engine/chassis numbers. The motor shops shall send a repair estimate of the damaged vehicle directly to GSIS.
GSD shall also submit repair estimate to GSIS from the NFA Motorpool and from an NFA accredited repair shop.
Repair of the NFA damaged vehicle shall be done by the motor shop chosen by GSIS to undertake the repair in order for the claim to be compensable.
3.4 Pertinent data/documents required to facilitate insurance claims for damages/losses sustained on motor vehicles shall be as follows:
3.4.1
For own damage claim
a. Automobile accident report in GSIS prescribed form
b. Affidavit of driver or sworn statement
c. Driver's trip ticket, duly approved
d. Police investigation report on the accident
e. Registration certificate and official receipt for both insured
and third party vehicle
f. Pictures of damaged vehicle and/or property
g. Photo copy of policy and official receipt of premium payment
h. Repair estimates from three (3) accredited repair shops
i. Official receipt and repair invoice from repair shop (if claims
for reimbursement)
j. Stencil of the motor and chassis number and serial number of
the insured vehicle involved in the accident
k. Certified xerox copy of driver's license with OR for both NFA
driver and third party.
3.4.2
For third party liability cla
im
a. Automobile accident report in GSIS prescribed form
b. Affidavit of driver
c. Driver's trip ticket duly approved
d. Driver's license and official receipt for both NFA driver
and third party
e. Registration certificate and official receipt for both insured and
third party vehicle.
f. Copy of complaint filed with the court by the adverse party
g. Doctor's Medical Certificate
h. Hospital bills
i. Marriage and/or birth certificate
j. Death certificate duly certified by the local civil registrar
k. Police investigation report on the accident
l. Photo copy of policy and official receipt of premium payment
All required data/documents must be submitted in four (4) copies.
3.5 Pertinent data/documents required shall be consolidated by GSD (C.O.)/
Property Custodian (F.O.) and forwards the same to CD-DTFM (C.O.)/
Accounting Unit (F.O.) for the billing and filing of the formal insurance claim
to GSIS. No insurance claim shall be filed without the proper notation and
billing of CD-DTFM (C.O.)/accounting unit (F.O.). Likewise, receipt of insurance claim check collections from GSIS shall be the sole responsibility of CD-DTFM (C.O.)/Accounting Unit (F.O.).
Filing of the formal insurance claim with the GSIS must be made not later than thirty (30) days for Metro Manila cases and sixty (60) days for provincial cases from the date of accident occurence.
3.6 The formal insurance claims billing to be prepared by CD-DTFM (C.O.)/Accounting Unit (F.O.) in coordination with PMSD - GSD (C.O.)/Property Custodian (F.O.) shall bear an amount determined by the GSIS adjuster in consultation with the motor shop chosen to undertake the repair of the damaged NFA vehicle and which has been duly confirmed by NFA.
3.7 For purposes of filing insurance claims amounting to over P5,000.00 by the Central Office, the concerned Head of Office shall be primarily responsible for informing GSD of the losses/damages on motor vehicles
within 24 hours
after its occurence and pertinent data/documents shall be furnished to GSD
within one month
thereafter. The notice of loss shall specify the date of occurence, estimated amount of loss/damage incurred and the policy number.
3.8 The processing and payment of claims of private motor shops for the repair of NFA vehicles with GSIS claims shall follow policies and procedures as provided in the SOP GS-VS01, NFA Motor Vehicle Claim Settlement.
4. Disposition of damaged motor vehicles shall follow disposition policies as provided in the revised SOP on the Disposal of Unserviceable Fixed Assets and Materials.
5.
Monitoring and Internal Control
5.1 A Regional Consolidated Report on Motor Vehicles shall be submitted by the Property Custodian - Regional Offices to the General Services Directorate every end of the month for purposes of controlling, monitoring and updating the records of Central Office, duly signed by the Regional Director.
5.2 All insured motor vehicles shall be properly recorded in the Insurance Registry Book (Exhibit 1) to be maintained by the PMMS-GSD/Property Custodian. Likewise, the logbook shall be used for monitoring GSIS remittances for NFA vehicle insurance claims and its payment to the concerned motor shop to prevent double payment.
5.3 To effectively control, monitor and update the records, the following informations shall be submitted to the PMMS-GSD regarding all vehicular accidents in the provinces:
a. Date of accident
b. Place of accident
c. Place of assignment of vehicle
d. Driver's name
e. Make and type of vehicle involved
f. Plate Number
g. Third party involved
h. Nature of accident
i. Estimate of damage sustained by the party and the insured vehicle.
j. Policy number and period covered.
F.
Accounting Treatment
1. To record premium payment for insurance coverage:
Central Office
DR: Insurance expense/Prepaid xxx
Insurance/BOCA*
CR: Vouchers Payable xxx
DR: Vouchers Payable xxx
CR: Cash-Other Banks, Current xxx
Regional Office
DR: Insurance Expense/Prepaid
Insurance / POA* xxx
CR: Vouchers Payable/COCA xxx
DR: Vouchers Payable xxx
CR: Cash-Other Banks,Current xxx
Provincial Office
DR: Insurance Expense/Prepaid
Insurance xxx
CR: Vouchers Payable/ROA xxx
DR: Vouchers Payable xxx
CR: Cash-Other Banks, Current xxx
* In case Central Office paid for the Field Offices.
2. To record allocation of insurance expenses:
For Allocation to Regional Office in the C.O. Books
DR: BOCA xxx
DR: Insurance Expense (xxx)
For Allocation to Provincial Office in the R.O. Books
DR: Insurance Expense xxx
DR: PCA xxx
CR: COCA xxx
For Allocation to Provincial Office in the P.O. Books
DR: Insurance Expense xxx
CR: ROA xxx
Note: Amount of insurance premiums to be allocated shall be based on the property inventory of the Field Offices concerned.
Marine Insurance premiums shall be charged to the issuing province as operating expenses.
3. To record insurance claim for damages/losses sustained:
a.
Properties
DR: Junked Assets xxx
DR: Accumulated Depreciation xxx
CR: Fixed Assets xxx
DR: Claims Receivable -
Insurance xxx
DR/CR: Losses/Misc. Income xxx xxx
CR: Junked Assets xxx
b.
Materials/Supplies
DR: Claims Receivable -
Insurance xxx
DR: Supplies and Materials Expense/
Surplus Adjustment (xxx)
Note: Claims Receivable for Marine Insurance shall be the computed amount based on the declared value of the shipment.
Claims Receivable for properties shall be the computed amount based on the insured value of the property.
4. To record collection of insurance claims:
DR: Cash with Collecting Officer xxx
CR: Claims Receivable-Insurance xxx
DR: Cash, Other Banks, Current xxx
CR: Cash with Collecting Officer xxx
5. To write-off insurance claim and set-up a receivable from employee in case damage/loss is thru the negligence of the employee, if insurance claim is denied:
DR: Claims Receivable-Others xxx
CR: Claims Receivable-Insurance xxx
6. To record receivables from shipping contractors if damages/losses was acknowledged as their liability:
DR: Claims Receivable-carriers xxx
DR: Accumulated Depreciation xxx
CR: Fixed Assets xxx
DR/CR: Losses/Misc. Income xxx xxx
7. To record salvage proceeds from the sale of damaged properties:
a.
Properties
DR: Cash - Collection Officer xxx
CR: Junked Assets xxx
b.
Materials/Supplies
DR: Cash with Collecting officer xxx
CR: Supplies and Materials (xxx)
expense/Surplus adjustment
III. RESPONSIBILITIES
A.
Director, GSD
1. Ensures that all insurable NFA properties are properly and adequately covered by an insurance against all insurable risks as provided herein.
2. Ensures compliance by the concerned personnel, to the policies provided herein as to insurance coverage and claiming of losses/damages sustained on NFA properties.
3. Approves/signs the accomplished insurance claim forms provided by the GSIS adjuster re proof of loss/damage claim for properties.
B.
Director, DAB
Ensures compliance to the accounting policies on insurance coverage and claiming for losses/damages sustained on NFA properties as provided herein.
C.
Director, DTFM
Ensures compliance to the insurance policies provided herein as to proper filing and billing of insurance claims against the GSIS for losses/damages sustained on NFA properties and assures efficient collection of the same.
D.
Regional Director/Provincial Manager
1. Ensures compliance, by concerned personnel, to the policies provided herein as to insurance coverage and claiming of losses/damages sustained on NFA properties under his jurisdiction.
2. Ensures compliance to the accounting policies on insurances as provided herein.
3. Notes on the Inventory List of Properties and Equipment and on other report requirements prepared by the concerned personnel for submission to GSD.
E.
Chief, PSMD-GSD
1. Supervises the implementation of policies regarding insurance coverages and claiming for losses/damages on NFA properties as provided herein.
2. Checks correctness of the insurance claim forms as accomplished by the concerned personnel including completeness of supporting documents required, re proof of loss/damage claim on properties and coordinate with the insurance adjusters to facilitate filing of formal insurance claims.
3. Maintains an insurance registry book where all insured properties are properly recorded.
4. Monitors movements of all fixed assets and prepares an inventory list of all NFA properties, whether purchased or fabricated, every end of June and December to check and update the list of insured properties.
F.
Chief, Cash Division-DTFM
Supervises the filing/billing of insurance claims with the Insurance company and follows up the immediate settlement/collection of the same thru Grainscor.
G.
Chief, COAD-DAB
Responsible for the proper recording of all transactions regarding insurance coverages and claiming for losses/damages on properties in accordance with the accounting policies herein provided.
H.
Regional/Provincial Accountant
1. Supervises the implementation of policies regarding the filing/billing and collection of insurance claims on motor vehicles amounting to P5,000.00 and below.
2. Certifies the correctness of the Inventory List of Properties and Equipment and other report requirements prepared by the concerned personnel for submission to GSD.
3. Responsible for the proper recording of all transactions regarding insurance coverages and claiming for losses/damages on motor vehicles in accordance with the accounting policies herein provided.
I.
Legal Officer
Determines/Investigates validity of insurance claims denied by GSIS, the institutes appropriate legal actions if applicable.
J.
Property Custodian/Supply Officer
1. Furnishes GSD with a list of newly acquired properties and/or locally purchased/fabricated properties as often as necessary for insurance coverage.
2. Reports to GSD every movement or transfer-out of properties from one province to another with all the pertinent shipping informations for marine insurance coverage.
3. Handles the renewal of insurance coverage of motor vehicles assigned to the field office concerned with the local GSIS.
4. Sends notice of loss/damage on properties and other pertinent information to GSD for the filing of insurance claims within the prescribed period.
5. Surveys damage/loss sustained on properties and recommends manner of disposition. Prepares inspection and Inventory report.
6. Attends to the filing of claims for losses/damages sustained on motor vehicles amounting to P5,000.00 and below.
7. Prepares an Inventory List of Properties and Equipment for submission to GSD every end of June and December.
8. The Regional Office Property Custodian shall prepare a Regional Consolidated Report on motor vehicles for submission to GSD every end of the month.
9. Prepares the Damaged Properties Disposition Report for submission to GSD within four (4) days after the final property issuance.
IV. FLOW CHART
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