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BY next
week, the Government Service Insurance System (GSIS)
will officially be the sole provider of the compulsory
third-party liability (CTPL) insurance.
This,
after the Department of Transportation and
Communications (DOTC), Insurance Commission and the GSIS
signed last week a memorandum of agreement (MOA) that
authorizes the latter to handle CTPL insurance for all
motor vehicles.
“We
signed a MOA just last week. In effect, what will happen
is that GSIS will handle the CTPL. We are just working
on the procedures on how this will be done. We have to
work on the collection process on premium payments, tax
collection that will go to the BIR [Bureau of Internal
Revenue] and other details,” said Land Transportation
Office (LTO) Assistant Secretary Robert Suansing in a
phone interview on Wednesday.
The
agencies are currently drafting the implementing rules
and regulations. “After the MOA signing, we need to
craft rules on what we signed. The rules will be out
this week and full implementation will start by next
week. Right now, there is a pilot test of the system to
see how the whole thing works,” added Suansing.
The CTPL
is a mandatory insurance required in the registration of
motor vehicles. It provides a P100,000 coverage for
death or bodily injuries and protects vehicle owners
from damage in case of accidents.
The
Regional Trial Court in Makati had earlier issued a
temporary restraining order (TRO) to the DOTC to prevent
the implementation of DOTC Order 2007-28, or the
Integrated Compulsory Third Party Liability System. This
order effectively puts the government in control over
the sale of motor-vehicle insurance.
But the
LTO chief said the TRO was already lifted.
Insurance firms opposed the GSIS model, saying it would
displace nonlife-insurance firms from the CTPL business.
But
Suansing explained that the new setup will be beneficial
to the public since this will eliminate the rampant sale
of fake insurance policies to vehicle owners.
“It will
benefit the motoring public. We hope that the insurance
agents will understand that we are just following the
law,” he added. |
