THE Philippine Insurance Commission (PIC) will continue at 9 a.m. on Thursday its administrative hearing on the complaint filed by stakeholders against the influential Association of International Shipping Lines Inc. (AISL) for alleged violation of the insurance code.
The case arose from the collection by AISL of container insurance without any authority from the Insurance Commission.
As early as the 1990s, AISL had started a mandatory collection from port stakeholders, the importers in most instances, P30 per shipping container. Earlier, AISL claimed that the mandatorily collected amount is for the insurance of shipping containers used by an importer or port stakeholder. Before an importer or consignee can pull out from the container yards the shipping container containing imported goods, he must first, among others, pay to AISL the above-mentioned amount to insure the said shipping container while the same is outside the container yards (delivering goods to importer’s premises).
This practice has inflationary effect on the economy as the insurance collected from them is eventually passed on to the consumers.
The AISL collection is called “equipment insurance clearance,” the receipt as proof of payment thereof is issued under the name of AISL and photo copy of this is attached as Annex “A” in the complaint.
The complaint, among others, said that:
1. The mandatory imposition of this amount on an importer or concerned port stakeholder is highly irregular and scandalous as the beneficiaries thereof are not the paying importer or concerned port stakeholder.
2. AISL has never shown any proof that the said collected amounts were indeed paid or remitted to insurance company/ies.
3. Most of all, AISL by its act of collecting said amount (ostensibly for insurance) is bereft of any license, permit or authority from the Insurance Commission to act as such.
Clearly, AISL ventured into an insurance related operation and at most acting as an insurance agent, the complainants said.
In connection with item No. 3, a formal query was sent to the Insurance Commission, Licensing Division as to whether AISL is registered, authorized or has been registered or authorized with the Insurance Commission as an insurance agent or as an insurance broker or to engage in an insurance related venture.
In September 2017, the Licensing Division of the Insurance Commission issued a reply stating that AISL has not been issued a certificate of authority that may authorize it to act either as an insurance agent or broker. Copy of the reply from the Licensing Division is attached in the complaint as another piece of evidence.
In view of the denial by the Licensing Division, it is clear that AISL has unlawfully collected from port stakeholders the above-mentioned amounts.
Information gathered by this writer from various sources showed that AISL has, since the early part of 1990s, collected from concerned port stakeholders more or less P25 per container, which was later increased to P30 per container and paid through a highly digitized system called “Go Fast.”
Contacted for comment, Patrick Ronas, AISL president, said in a text message: “With much regrets but I was advised not to comment as it is subjudice [under judicial consideration], according to our lawyers.”
Based on verification, AISL is an association composed of international shipping lines that are calling at Philippine ports.
This is how it happens: Before an importer, broker or concerned port stakeholder can pull out from container yards his cargo loaded on the AISL-member shipping line container, he must pay the said amount to AISL. Upon payment of the P30, AISL will issue a receipt with the following printed words: “Equipment Insurance Clearance.” According to port stakeholders who used containers belonging to AISL member-line, this amount will be used to ensure the return of the container used by a port stakeholder.
According to the complaint, the justification for the AISL collection is that there is a need to insure a subject container from the time when it leaves any port of the Philippines and terminates when the same is returned to any international seaport of the Philippines or to a duly designated place of return.
But such an activity requires the authority of a regulatory agency, in this case, the Philippine Insurance Commission, the complaint said.
To reach the writer, e-mail cecilio.arillo@gmail.com.