DOF, Insurance Commission launch ‘Adrem’ in C. de Oro-A A +A
Saturday, October 26, 2013
TO GIVE more assurance to their clients for a speedy settlement of claims, the Department of Finance-National Credit Council (DOF-NCC) and the Insurance Commission (IC) have initiated a pro-active measure that would benefit mainly the stakeholders in the micro-insurance industry.
The Alternative Dispute Resolution for Microinsurance (Adrem) seminar, on its second leg here on Thursday, was designed to give an idea to interested parties to become mediators after going through trainings, that would enable insurance providers and policy holders to reach a win-win resolution of cases where disputes might arise.
Gil Beltran, DOF undersecretary, said that Adrem is a kind of reform that would make the microinsurance industry more attractive to the low-income bracket as intended.
He said that through the years microinsurance has its continued uptrend in that since it started in 2010 with only three million clients, it has already reached 12 million policy holders this year.
“And we are aiming to cover the 25 million Filipinos in the country who are informally employed and educate them on the importance of the insurance coverage.” Beltran said.
Lawyer Chris Rafal of the IC said that the microinsurance is in response to the need of the low-income sector where their capacity to pay for premiums is within reach.
“Microinsurance products have affordable premiums and the benefits correspond to the risks, and the claims settlement is fast,” Rafal said.
He said that the Adrem method aims to reduce the cost, time, and complexity of any subsequent litigation and provide the option for out-of-court resolution.
The microinsurance industry is composed of different providers, each requiring distinct dispute resolution mechanism.
“We want to insure that microinsurance consumers will be protected that the Adrem processes are incorporated into the regulatory framework. And that is our commitment,” said Joselito Almario, DOF-NCC executive director.
Published in the Sun.Star Cagayan de Oro newspaper on October 26, 2013.