Everything You Need to Know About Non-Life Insurance in the Philippines

Published: July 8, 2020 | Posted by: Moneymax | Personal Finance


Non-Life Insurance in the Philippines | Moneymax

We face uncertainties every day. Sometimes, they even set us back financially. An unexpected hospital bill, property loss, or car accident can soil your savings and ruin plans you already have. An insurance policy, such as non-life insurance, can help minimize the financial damages these mishaps can do.

Non-life insurance protects you and your valuables from damages and losses. It can also cover you from legal liabilities. Keep on reading to know more about this type of insurance, its benefits, and which insurance companies in the Philippines offer non-life insurance policies.

What is Non-Life Insurance?

Non-life insurance is a type of insurance covering people, property, or legal liability[1]. Also known as general insurance, it is a policy that can provide you with compensation for losses caused by certain financial events. Your insurance company will pay to cover some or all of your losses based on your coverage.

The coverage period for this type of policy is usually one year, with the premiums paid on a one-time basis. How much you have to pay for non-life insurance depends on your policy coverage and the insurance company’s premium rates.

Life Insurance vs Non-Life Insurance

Non-Life Insurance in the Philippines - Life Insurance vs Non Life Insurance

Life insurance is a policy that provides compensation or death benefit to beneficiaries upon the death of the insured individual. Aside from premature death, some life insurance policies cover illness, income during retirement, educational plans, and estate preservation.

On the other hand, non-life insurance covers things not covered by life insurance. This policy can protect you from property loss, damages, or legal liabilities.

Read more: What is the Best Life Insurance in the Philippines?

Types of Non-Life Insurance Products

Many types of non-life insurance can financially protect you or the things that are valuable to you. Some of these are:

a. Auto insurance

Auto insurance is a policy that protects you from financial losses due to a car accident, damage, or theft.

b. Aviation insurance

This policy covers losses from owning, maintaining, and using aircraft, hangars, or airports. You can claim for damages, personal injury, or property damage with this type of non-life insurance policy.

c. Business insurance

This policy can protect your business from losses due to events that may happen during regular business operations. The coverage may include property damage, legal liability, or employee-related risks[2].

d. Engineering insurance

Engineering insurance protects buildings and civil engineering projects from actual physical damage and losses during construction.

e. Health insurance

Health insurance covers medical treatments, hospital stays, or check-ups.

f. Home insurance

This type of non-life insurance covers losses from damages to your house and assets inside the home. Fire insurance may also be part of a home insurance policy.

g. Marine insurance

It covers loss or damages of cargo, ships, or damages incurred during water transport.

h. Travel insurance

This covers you from risks associated with traveling such as losing your luggage, delays, injuries, and other emergencies.

Protect your car and your loved ones with car insurance!

Benefits of Non-Life Insurance

A non-life policy can help you live life risk and worry-free. Here are its benefits:

  • It gives you peace of mind. Non-life insurance can protect you from uncertainties like damages and losses. Instead of always thinking about the financial repercussions of car repair, theft, or hospitalization, you will have more time enjoying life and spending time with your family
  • A non-life insurance policy ensures business stability. If you have business insurance in place, you may not have to shell out money for employee-related risks, property damage, or legal liabilities. Your business can carry on because your insurer will provide compensation based on your policy coverage.
  • It can secure you from the burden of loss. Losing personal properties during natural calamities can be daunting. You may even feel helpless. However, with a non-life insurance policy, you can get enough money to help you overcome the loss and rebuild your life.
  • It can help minimize expenses. Sure, you have to pay for the premiums, but non-life insurance may cover partial or full payment for car repairs, hospital bills, property damages, and even losses. Without insurance in place, these may cost you a lot more than what non-life insurance costs.

How to Choose a Non-Life Insurance That Suits You

Non-Life Insurance in the Philippines - How to Choose Non Life Insurance

Non-life insurance policies aren’t one size fits all. Consider these factors when choosing the right one for you:

  • Your needs. Before looking for an insurance policy and provider, ask yourself: What do I need the insurance for? Do you need to protect your car? How about a worry-free trip? Or do you want a safety net for your business? It’s easy to get swayed by insurance claims but focusing on what you need will make it easier to choose a non-life insurance policy that is right for you.
  • Coverage. Make sure that the policy covers what you need to be covered. For example, if you need your travel insurance to cover refunds for canceled flights and luggage loss, look for an insurance provider that covers these instances. You may also inquire if you can get additional coverage if a provider’s standard packages do not offer what you are looking for.
  • Cost-benefit ratio. Insurance costs depend on the coverage, validity period, and provider. Keep a close eye on how much the policy costs and make sure it justifies the benefits. Get a policy that is the right balance between cost and benefit.
  • Insurance provider. Nowadays, opportunistic people try to scam unsuspecting victims to buy policies that are too good to be true. Make sure to only purchase insurance from the provider you trust. Do your research and compare policies from various companies before settling in a package that you are happy with.

Read more: How Much Does Car Insurance Cost in the Philippines?

Top 10 Non-Life Insurance Companies in the Philippines

Non-Life Insurance in the Philippines - Top 10 Non Life Insurance Companies in the Philippines

Here are some of the top insurance companies in the Philippines and their non-life insurance products:

1. AIG

AIG has more than 80 million customers in 100 countries. The company has been present in the Philippines since the 1920s. Some of their insurance products are personal insurance, aviation insurance, and marine insurance.

  • Business insurance
  • Travel insurance
  • Health supplement claims
  • Property claims

2. Alpha Insurance and Surety Company

Alpha Insurance and Surety Company started as a domestic non-life insurance provider in 1957. As of 2018, the company has over 200 employees and more than 200 agents. It offers surety, bonds, and personal accident insurance.

  • Marine insurance
  • Engineering risk insurance
  • Fire/allied perils
  • Motor vehicle insurance

3. Charter Ping An

This insurance company is owned and operated by AXA Philippines. It is one of the leading general insurers in the country. Charter Ping An offers education plans, health coverage, and income protection.

  • Car insurance
  • Business security
  • Travel insurance
  • Property insurance

4. Commonwealth Insurance Company

This insurance provider has comprehensive general liability policies, fire insurance, and even payroll robbery insurance. Commonwealth Insurance company was founded in 1935 by Don Andres Soriano, who also founded San Miguel Brewery.

  • Personal accident insurance
  • Special risks insurance
  • Marine insurance
  • Motor vehicle insurance

5. Malayan Insurance Company

The company started in 1930 as China Insurance and Surety Company, Inc and evolved into one of the country’s premier insurance providers. Malayan offers life and non-life insurance packages from motorcycle insurance to golf insurance for any untoward accidents during a round of golf.

  • Motor vehicle insurance
  • Travel insurance
  • Home Protect Plus
  • Business Protect

6. Paramount Life and General Insurance

Paramount is a leading OFW insurance provider. It has over 30 branches nationwide. Some of their insurance products are life insurance, homecare insurance, and health insurance.

  • Motor vehicle insurance
  • Travel insurance
  • Business owners’ insurance
  • Family protector insurance

7. Pioneer Insurance Safety Corporation

The company was founded in 1954, specializing in non-life insurance. Pioneer offers micro-insurance for individuals and properties. They also offer travel and health insurance packages.

  • Travel insurance
  • Micro-insurance
  • Aviation insurance
  • Cargo insurance

8. Prudential Guarantee

Prudential Guarantee has over 30 offices in the country. Some of their insurance packages include insurance for travel, property, and automobiles.

  • Motor vehicle insurance
  • Aviation insurance
  • Home guard
  • Property insurance

9. Standard Insurance

Standard Insurance was named Best General Insurance (Philippines) by World Finance. Some of the company’s insurance offerings are OFW Protect, Travel Protect, and Motor Vehicle insurance.

  • Fire and Allied Perils
  • Marine Insurance
  • Office Protect
  • Travel Protect

10. Stronghold Insurance

Stronghold Insurance started in the 60s as Mabuhay Insurance & Guaranty Co., Inc. Today, it is one of the most dependable insurance providers in the Philippines. It offers suretyship, comprehensive general liability, and property floater insurance, among others.

  • Marine insurance
  • Contractor’s all risks insurance
  • Fire insurance
  • Motor vehicle insurance

Final Thoughts

Non-life insurance can protect you from financial mishaps due to unexpected events. It can also give you peace of mind, knowing your valuables are protected. Choosing the right policy depends on your needs, the coverage you want, and its cost-benefit ratio. Make sure to do your due diligence and choose an insurance package from a reputable provider.

Be smarter with money. Follow Moneymax today!

Sources: