THE chairman of the Philippine Insurers and Reinsurers Association (Pira) has appealed for unity among nonlife insurers who oppose the Land Transportation Office (LTO) proposal to accredit only two “administrators” that will handle all the compulsory third-party liability insurance policies required in registering motor vehicles.
Pira Chairman Michael Rellosa said the Reformed Compulsory Third Party Liability Insurance (RCTPL) being pushed by the LTO is in restraint of trade and will create undue advantage to whoever would be accredited as “administrators” of the compulsory third- party liability insurance.
The proposed RCTPL is being held in abeyance by a temporary restraining order issued by the Regional Trial Court in Makati City upon a petition filed by Standard Insurance Co. Inc.
Rellosa said while Pira does not have the legal stature to file a separate petition against the RCTPL, the umbrella organization supports the move challenging the validity of the RCTPL.
He said Pira members have already conducted a poll on what the organization’s stand would be on the issue of the validity of the RCTPL, and the opposition to the measure prevailed.
The problem, he said, is that there are also some Pira members who are pushing for RCTPL despite the result of the poll. This was why in his speech at the launching of the report on microinsurance takeup in the country by the German International Cooperation last week, Rellosa appealed for unity among the Pira members.
Earlier, the Insurance Commission (IC) questioned the legal basis of LTO chief Alfonso Tan in issuing a memorandum circular that will establish the RCTPL and the appointment of only two pools of insurance companies that will serve as “administrators” of all compulsory motor vehicle-insurance policies.
The IC asserted that it is the government agency tasked to exercise regulatory supervision over insurance companies and insurance agents, including the compulsory motor vehicle insurance, to ensure that the laws on insurance are faithfully executed and the rights and welfare of the public are protected.
