Sec. 393.

No cancellation of the policy shall be valid unless written notice thereof is given to the land
transportation operator or owner of the vehicle and to the Land Transportation Office at least fifteen (15)
days prior to the intended effective date thereof. Upon receipt of such notice, the Land Transportation
Office, unless it receives evidence of a new valid insurance or guaranty in cash or surety bond as
prescribed in this chapter, or an endorsement of revival of the cancelled one, shall order the immediate
confiscation of the plates of the motor vehicle covered by such cancelled policy. The same may be
reissued only upon presentation of a new insurance policy or that a guaranty in cash or surety bond has
been made or posted with the Commissioner and which meets the requirements of this chapter, or an
endorsement or revival of the cancelled one.

Sec. 394. If the cancellation of the policy or surety bond is contemplated by the land transportation
operator or owner of the vehicle, he shall, before the policy or surety bond ceases to be effective, secure
a similar policy of insurance or surety bond to replace the policy or surety bond to be cancelled or make
a cash deposit in sufficient amount with the Commissioner, and without any gap, file the required
documentation with the Land Transportation Office, and notify the insurance company concerned of the
cancellation of its policy or surety bond.

CANCELLATION OF CMVLI
Effects of the cancellation of the policy:
GR: Upon the receipt of the notice of such cancellation, the LTO shall order the immediate confiscation of
the plates of the motor vehicle concerned

XPN: No confiscation will be order if said Office receives any of the following:
1. An evidence or proof of a new and valid CMVLI cover which may be either an insurance policy or
guaranty in cash or surety bond;
2. A signed duplicate of an endorsement or addendum issued by the insurance company concerned
showing revival or continuance of the CMVLI cover; or
3. A certification issued by the Insurance Commissioner to the effect that a cash deposit in the amount
required as limit of indemnity has been made with him by the MVO or LTO

Duties of motor vehicle owner or land transportation operator in contemplation of the cancellation
of the policy:
Contemplating the cancellation of the policy, the MVO or LTO shall:
1. Give to the insurance or surety company concerned a written notice of his intention to cancel;
2. Secure, before the insurance policy or surety bond ceases to be effective, another similar policy or
bond to replace that one canceled
3. Without making any replacement, make a case deposit in sufficient amount with the Insurance
Commissioner and secure a certification from the Insurance Commissioner regarding the deposit
made for presentation to and filing with the Land Transportation Office
Sec. 395. In case of change of owner ship of a motor vehicle, or change of the engine of an insured
vehicle, there shall be no need of issuing a new policy until the next date of registration or renewal of
registration of such vehicle, and: Provided, That the insurance company shall agree to continue the policy,
such change of ownership or such change of the engine shall be indicated in a corresponding endorsement
by the insurance company concerned, and a signed duplicate of such endorsement shall, within a
reasonable time, be filed with the Land Transportation Office.

CHANGE OF OWNERSHIP
Transfer of ownership does not suspend the policy
PVD:
1. the insurance company agrees to continue the policy
2. Such change of ownership or engine is indicated in a corresponding endorsement by the insurance
company concerned
3. A signed duplicate of the endorsement is filed with the LTC