Acts of Nature Car Insurance in the Philippines: Flood Cover

CTPL doesn't pay for flood, typhoon or earthquake damage to your own car, and the standard comprehensive car insurance form excludes those losses too. To be covered, your policy needs Acts of Nature (AON) cover, which the Insurance Commission tariff prices at a minimum of 0.50% of the sum insured.

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What Acts of Nature means in a Philippine car policy

Agents and insurers say Acts of Nature, Acts of God or just AON. In car insurance sales talk they all point to the same add-on, and AON is the short form you'll usually see on a quote.

The Insurance Commission's motor tariff lists the events: flood, typhoon, hurricane, volcanic eruption, earthquake and other convulsions of nature. That's the list. It doesn't mean anything weather related is covered, so your own policy wording still has the final say.

Then Insurance Commissioner Dennis B. Funa put it plainly in a 5 September 2018 column: so-called comprehensive car insurance here "is not really comprehensive". In other countries Acts of God are part of comprehensive car insurance. In the Philippines they're not, and he wrote that most vehicle damage from these events here comes from flooding. You buy the cover separately, for an additional premium.

Why standard comprehensive car insurance excludes flood

Section III of the Insurance Commission's standard Private Car Policy is the own damage part. It pays for loss or damage from things like accidental collision, fire, lightning, carnapping and malicious acts. But the whole policy also sits under a set of General Exceptions.

General Exception 3 is the one that bites in typhoon season. It excludes any loss "directly or indirectly, proximately or remotely" connected with flood, typhoon, hurricane, volcanic eruption, earthquake or other convulsion of nature. Floodwater doesn't have to be the only cause. A tree branch that falls on your car during a bagyo can be pulled into the exclusion too.

Then comes the hard part. The same clause says you, the insured, must prove the loss had nothing to do with those events. If you can't, the form says the insurer isn't liable. Imagine a collision on a flooded road in Marikina at the height of a storm. Separating the accident from the storm is not easy.

Sections I and II (the CTPL part) are carved out of this exception. That doesn't make CTPL flood cover. CTPL doesn't pay for damage to your own car. If CTPL is all you have, our CTPL guide explains what it does pay.

For how the four sections fit together, see own damage cover and CTPL compared. And don't go by the product name on the cover page. It tells you nothing about flood.

How AON changes the exclusion

IC Circular Letter 2021-54 sets out the standard sections of comprehensive car insurance and names Acts of Nature as an optional cover. It also tells insurers and their agents to explain each cover to you, especially which ones are mandatory and which aren't. So it's fair to ask your agent straight out: may AON ba ito?

AON usually works through an endorsement, which is an add-on page that changes the main policy wording. BPI MS publishes a clear example. Its FTHVEE or Convulsion of Nature endorsement says that, for an additional premium, the words "Flood, Typhoon, Hurricane, Volcanic Eruption, Earthquake or other Convulsion of Nature" are deemed deleted from the General Exceptions. FTHVEE is just the first letters of those perils.

Some products build AON in. Others sell it as an extra. Either way, it should show up in your documents.

Once those words are gone, a flood loss is treated like any other own damage claim under Section III. That's a big change. It still isn't a promise that every repair bill gets paid.

What AON still won't change

The IC tariff sets the private car deductible at a minimum of P2,000 or 0.5% of the sum insured, whichever is higher. Insurers can set their own amount above that. Malayan's AutoMaster page, for example, lists a fixed participation fee of P3,000 for sedans and hatchbacks and P4,000 for SUVs, crossovers and pick-ups (as listed on 10 November 2026). Your schedule shows yours.

Depreciation is the other big one. In BPI MS's published terms, you pay nothing toward new parts if the car is up to 3 years old. After that your share starts at 20% and climbs to 40% for cars over 7 years. Batteries, tires, ball joints, tie rods and shock absorbers carry a 45% share once the car is past 3 years. The schedule doesn't apply to a total loss.

The same terms cap what the insurer pays at the car's value at the time of loss or your estimate of value in the schedule. If the car was insured for less than it's worth, AON won't fix that.

One more thing. General Exception 3 also excludes riot, strike and civil commotion. Circular Letter 2021-54 lists riots and strikes as a separate optional cover, so AON on its own doesn't bring those back.

How much Acts of Nature cover costs

The IC motor tariff lists AON at a minimum rate of 0.50% of the sum insured. The schedule is marked with rates as of 1 January 2015. It's a floor, not your quote.

Illustration only, not a quote: a car insured for P800,000 x 0.50% = P4,000. So AON on that car would be at least P4,000 a year at the minimum rate, on top of own damage, theft and the other parts of the policy. Your insurer sets the actual premium.

Why a minimum at all? After Typhoons Ondoy and Pepeng, demand for AON jumped and insurers took huge losses. Circular Letter 30-2010, dated 26 October 2010, set the 0.50% floor so insurers would build reserves for the next big flood instead of cutting prices to win customers.

When you get a quote, ask two things: is AON in this figure, and what sum insured did you use? Our car insurance cost guide shows how the tariff rates add up for a sample car.

How to check if AON is already included

Get your policy out (or the PDF the insurer emailed you) and look at the schedule page first. The IC standard form has a premium line under "Others" called Acts of Nature. If there's an amount there, look for the endorsement behind it.

The endorsement might be titled AON, FTHVEE or Convulsion of Nature. What matters is that it removes or overrides the flood and typhoon exclusion. Still unsure? Ask the insurer in writing to point to the page where your flood cover is.

Insurers handle it differently. Here's what three of them publish, as listed on 10 November 2026:

• Malayan AutoMaster: lists Acts of Nature as a benefit, including damage caused by flood, typhoon and earthquake.
• Oona: its FAQ says most comprehensive car insurance plans include AON, while a basic policy may need it as an extra option.
• BPI MS: its published endorsement adds the cover in consideration of an additional premium.

This isn't a ranking, and a product page isn't your policy. The documents you were issued are what count.

Do you need AON for your car?

Start with where the car sleeps. A street in a barangay that floods every rainy season, a basement parking that took water last year, a daily route along a road that turns into a river: each one is a reason to look hard at AON. Where you park during a typhoon matters as much as where you drive.

It isn't only about flood. Earthquake and volcanic eruption are on the list too, so read the full endorsement.

Then do the math for your own car. Weigh the extra premium against what a flooded engine or interior would cost you with no cover. On an older car, check the deductible and any depreciation share on new parts, along with the policy's value limit.

If you're comparing policies, see our guide to choosing car insurance. This is general information, not personal insurance advice.

If your car gets flooded

Don't start the engine. Cranking an engine that took in water can make the damage worse. After that, the order is simple.

• Leave the engine off. Don't drive before the necessary repairs. The standard form excludes any extension of damage or further damage from doing so.
• Take photos. Include the damaged areas and a full view showing the plate number.
• Notify your insurer. The standard form requires notice as soon as possible.
• Wait for the go signal on repairs. Ask what the insurer needs for your loss before anything is fixed.

For own damage, IC Circular Letter 2020-92 lists a claim form, affidavits, photos, a repair estimate, and copies of your license and registration. Our guide to using your car insurance has the full claim steps, so we won't repeat them here.

On timing, Section 249 of the Insurance Code says a non-life claim must be paid within 30 days after the insurer receives proof of loss and the amount is agreed. If there's no agreement within 60 days, payment is due within 90 days of receipt. Those deadlines apply to claims the insurer owes. They don't decide whether it owes one.

Frequently asked questions

Does CTPL cover flood damage to my car?

No. CTPL doesn't pay for damage to your own car. For flood damage you need Acts of Nature cover, subject to your policy terms.

What does AON mean in car insurance?

AON stands for Acts of Nature, also sold as Acts of God cover. It removes the policy's exclusion for flood, typhoon, hurricane, volcanic eruption, earthquake and other convulsions of nature.

Sakop ba ng insurance ang baha?

Depende kung may AON ang policy mo. Kung CTPL lang o comprehensive car insurance na walang Acts of Nature, hindi sakop ang baha sa sarili mong kotse. Kung may AON, puwede kang mag-claim, subject to your policy terms like the deductible.

How much is Acts of Nature cover?

The Insurance Commission tariff sets a minimum rate of 0.50% of the sum insured. As an illustration, that's at least P4,000 a year on a car insured for P800,000. Your insurer sets the actual premium.

Can I add AON in the middle of my policy year?

Ask your insurer. The IC standard form lists AON as an optional cover with its own premium, so get any change added to your policy in writing.