Alternative microinsurance dispute resolution launched in CdeO

Philippine Information Agency
BY: APIPA P. BAGUMBARAN
Saturday 26th of October 2013

CAGAYAN DE ORO CITY, October 26 (PIA) --- The Department of Finance-National Credit Council (DOF-NCC) and Insurance Commission (IC) launched here on Thursday, October 24, an alternative redress mechanism for claims disputes in the microinsurance industry.

Dubbed Alternative Dispute Resolution for Microinsurance (ADReM), this mechanism aims to provide stakeholders with options to resolve disputes outside the courtroom to minimize expenses and avoid delays of litigation.

IC Deputy Commissioner Dorothy Calimag in a seminar held in Mallberry Suites said ADReM provides an avenue to settle microinsurance disputes through the swiftest and most accessible means.

She said the ADReM process is characterized by the principles of LAPET which stands for least cost, accessible, practical, effective and timely resolution of disputes.

Cases referred to the ADReM include disputes arising from denied claims or those not fully paid within 10 working days from receipt of complete documents, she said.

Calimag further said microinsurance providers are required to promote the use of ADReM as a recourse mechanism available to policy holders to address disputes.

She also clarified that there will be confidentiality in everything that will be stated in the ADReM settlement agreement and it cannot be used for or against the parties in the regular courts.

The IC has already issued separate guidelines for the implementation of ADReM by commercial insurance companies, mutual benefit associations, and cooperative insurance societies.

In addition, a circular was also issued on the procedures of accrediting ADReM mediators-conciliators.

Pushed by the government to supplement its anti-poverty programs, microinsurance provides small insurance coverage that meets the needs of the low-income sector for risk protection and relief against contingencies such as death, accidents, illness, and natural and man-made calamities.

DOF-NCC Director Joselito Almario said they incorporated the ADReM processes into the country’s microinsurance regulatory framework to ensure that microinsurance consumers are protected. (APB/PIA-10)

DOF, Insurance Commission launch ‘Adrem’ in C. de Oro

Sunstar, Cagayan de Oro
By Butch D. Enerio
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

Alternative dispute resolution to make microinsurance easier

EDGE DAVAO
FRIDAY, 27 SEPTEMBER 2013 09:34 PDF
BY EJ DOMINIC FERNANDEZ

A more comprehensive dispute resolution will bring a more comfortable claiming method to microinsurance policy holders, especially from the low-income and marginalized sector, through the first leg of the Alternative Dispute Resolution for Microfinance (ADReM) seminars held here.

Insurance Commission (IC) deputy commissioner Ferdinand George Florendo in the seminar held at the Apo View Hotel yesterday, said the alternative dispute resolution they are promoting is for inclusive growth by reaching the poorest of the poor.

The ADReM first public seminar was initiated by the Department of Finance – National Credit Council (DOF-NCC), and the Insurance Commission (IC) to promote to the low-income and marginalized sector that they too can be insured in a more convenient way.

Low Cost, Accessible, Practical, Efficient, ad Timely (LAPET) are the main features of ADReM method, which makes it different from the mainstream insurance, Florendo said.

DOF-NCC director Joselito Almario said as long as the insurance policy has the seal of Microinsurance, the maximum time to claim the benefit should not exceed 10 days, otherwise, complaints can be made by the policy holder or the beneficiary.

He said, there are some 18 insurance companies selling microinsurance, including agents, brokers and cooperatives.

According to Chris Rafal of IC, there were 3.1 million micro insurance policy holders in 2009 which multiplied four times in 2012 with 12 million policy holders.

Microinsurance products have affordable premiums, the benefits correspond to the risks, and claims settlement is fast.

The seminar was the commencement of a nationwide campaign to implement the provisions of the ADReM Frawmework, launched in October 2012 by a technical working group led by the DOF-NCC and the IC, with key representatives from the industry as members and with rechnical support from the German Development Cooperation Regulatory Framework Promotion of Pro-poor Insurance Markets in Asia Programs (GIZ-RFPI Asia).

Alternative dispute resolution mechanism for microinsurance launched

Philippine Information Agency
Information to Empower Filipinos
BY: CARINA L CAYON
Thursday 3rd of October 2013

DAVAO CITY, Oct. 03 (PIA) – The Department of Finance (DOF) and the Insurance Commission (IC) recently introduced in the region an alternative dispute resolution mechanism for microinsurance to address complaints on benefit claims outside the courtroom.

The DOF and IC created the Alternative Dispute Resolution for Microinsurance (ADReM) method aiming at minimizing expenses, time and delays of litigation, and providing option for out-of-court resolution of disputes arising from denied microinsurance claims.

The mechanism also covers addressing complaints from those not fully paid within ten working days from receipt of complete documents.

However, the implementing guidelines set by IC in its Circular Letters do not stop the parties from seeking other modes of settlement.

The implementing guidelines feature ADReM’s structural process described with the acronym LAPET which stands for least cost, accessible, practical, effective and timely.

IC deputy commissioner Ferdinand George Florendo said the ADReM processes are integrated as additional component in the country’s microinsurance regulatory framework seeking to strengthen consumer protection in the microinsurance sector whose beneficiaries are mostly from the low-income group.
The ADReM implementing guidelines were issued to microinsurance providers such as the commercial insurance companies, mutual benefit associations and cooperative insurance societies that provide small and short-term insurance coverages to low-income members.

The IC has accredited 18 life microinsurance companies that shall respond to the needs and paying capacities of the low-income sector.

As part of the mechanism, a separate Circular Letter was set for the procedures of accrediting mediators-conciliators to sit in the ADReM.

The IC does the accreditation of individuals who voluntarily seek to be accredited and whose qualifications include competence, knowledge and training in the process of mediation-conciliation.

The accredited ADReM mediators-conciliators shall abide by the Code of Conduct to include ensuring that “the resolution of a dispute rests will be the responsibility of the parties concerned and that at all times will not pressure any of the parties into an agreement or make a substantive decision on behalf of any party.”
Florendo said that they will be going around the country through public seminars to assure that people will know about the existence of ADReM.

“We plan to reach out to as many as we can. We will bring the mediators-conciliators to the communities,” he stated.

The IC official said that this alternative dispute resolution method has long been conceptualized, but added that it is only now that it has been formalized.

The concept, he said, is part of the government’s effort for inclusive growth in reaching out to the poorest of the poor.

Florendo disclosed that 2.9 million Filipinos are covered by microinsurance, of which figure represents slightly more than ten percent of the 25 million Filipino populace living below poverty level. (RGA/CLC/PIA-XI)

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