The continuing saga of the CTPL issue

THE issue on the Compulsory Third Party Liability (CTPL) collection seems to be getting out of hand as the group of local car insurers and the group of government agencies have begun throwing brickbats at one another.

We may infer that collection of CTPL will now be done by the Land Transportation Office (LTO) in cooperation with the Department of Transportation and Communications (DOTC), Government Service Insurance System (GSIS) and Stradcom Corp. after a regional trial court recently threw out a petition of the Philippine Insurers and Reinsurers Association (Pira) to put a stop to the same.

Pira and several other groups opposing the government takeover of the CTPL industry (a multibillion-peso business) recently held a press conference where they aired several concerns. Under the new setup, insurance agencies that have long been issuing CTPL insurance would no longer be needed.

In a spate of full-page advertisements published in various newspapers earlier this month, the GSIS claimed that being the ONLY insurer accredited by the DOTC and the LTO system will protect the public and solve the problem of fake CTPL certificates.

No more overpricing, it said, since the more than P900 being paid for a CTPL during registration will go down to P575. There will be convenient processing since motorists shall only deal with the LTO, which will issue a single receipt. Among other things it also claimed were correct and accurate claims when one figures in an unfortunate accident; correct taxes would be collected for the government; and no more switching of insurance policies. “These sellers of fake CTPLs will lose billions of pesos once their racket is stopped by the clean, modern, efficient and accurate GSIS system,” the ad claimed.

But Pira is valiantly opposing the new setup, and said the resulting government monopoly of the industry would scare foreign investors who plan to do business in the country. “This will be just like martial law again. It will give the country a bad image in the international scene. In other countries, they are encouraging their private sector to grow. Only in the Philippines can you see the government taking over a private business, displacing 60,000 agents who depend on the CTPL as their primary source of income,” said Melencio Mallillin, a trustee of Pira and president of the Insurance Institute for Asia and the Pacific.

It was Pira that spearheaded a court case against the said new setup. Although it was dismissed due to technicalities, Pira chairman Honcio Ramajo said, “They will pursue this battle up to the Supreme Court.”

Salvador Navidad, president of the 60,000-strong Bukluran ng mga Manggagawa sa Industriya ng Seguro, in a recent manifesto said the new setup “will deprive us and our families who depend on our very source of livelihood. It also threatens to destroy us.”

“The DOTC department order in connivance with the GSIS only favors the interest of a few who want to make big profits at the expense of a majority of small stake-players involved in the CTPL insurance industry. It devours the open-market policy of a democratic state like the Philippines where propagation of equal opportunities for livelihood should be embraced,” the manifesto also added.

The saga continues …

LAST year’s inaugural Philippine International Motor Show was a resounding success, recording no less than 60,000 visitors throughout the several days of its run.

But the organizing Chamber of Automotive Manufacturers of the Philippines Inc., headed by its president Elizabeth Lee, expects this year’s second edition to be bigger and better. The cavernous World Trade Center will again be the venue of the event that will run from August 21to 24.

“Drive The Future: Towards Safer and Cleaner Motoring” will be the theme of the event that will bring together 15 global auto brands in the local automotive industry. A majority of car brands were represented during the media presentation held on July 22 at the Makati Shangri-La Hotel.

VEHICLE buyers all over the world have shown that the skyrocketing price of oil is the No. 1 reason they choose small and fuel-efficient car models.

That’s why major vehicle manufacturers are keeping up with what the market demands. Reports have it that carmakers are slashing the production of pickups, trucks and sport utility vehicles. Instead, fuel-efficient, smaller cars are being given top priority as more buyers continue to gobble them up worldwide.

Toyota, for example, is hard up in keeping with the demand for its new Prius Hybrid, which can do 46 miles per gallon. It reportedly suspended truck and SUV production in the US already.

General Motors, Toyota’s archrival, and even Ford Motors Co. are said to be increasing their production of small cars for worldwide consumption.

2008 Jeep Wrangler Rubicon 4x4 Off-road

On Road, Off Road, What Road?

IT is not the most unusual automobile in the country, what with its great- grandfather making its Philippine debut during the Second World War. In fact, a whole fleet of evolved passenger models now clog Manila’s streets.

THE Audi A4 has always been tagged as a direct rival to the BMW 3-Series and the Mercedes-Benz C-Class, but rarely made a top-of-mind dent on motorists for one reason or another, despite major technological advances. To make sure that the A4 will become THE choice in the premium compact-sedan class, PGA Cars took a select number of journalists to Subic (including the Subic International Raceway, or SIR) and back to Manila using the current iteration of its volume seller.

Battle lines drawn in CTPL controversy

IT seems that the forces for and against the government’s planned takeover of Compulsory Third Party Liability (CTPL) insurance for motor vehicles have gone on war footing as Department of Transportation and Communications (DOTC) Order 2007-28, which will place the CTPL insurance coverage of an estimated 5.5 million motor vehicles—a business reportedly worth P3 billion—under the Government Service Insurance System (GSIS), seems destined for implementation.

Eyes on the Road:

The continuing saga of the CTPL issue

Full Tank:

Gas-price increase authors auto recession?

EVERYBODY’S talking about it.

The almost unabated oil-price increases in the world market have been wreaking havoc on all parts of the globe, except Antarctica and the North Pole (but of course).

CASTROL introduced its latest four-stroke motorcycle oil product Castrol Power 1 by letting biking enthusiasts experience firsthand the product’s impressive features during the first-ever 12-hour endurance race in the country.