Insurers seek stop to corruption in LTO


A group of non-life insurers on Thursday urged the incoming Duterte administration to rid the Land Transportation Office (LTO) of corrupt STET.

In a statement, the Philippine Insurers and Reinsurers Association (PIRA) appealed to President-elect Rodrigo Duterte and incoming Transportation Secretary Arturo Tugade to remove corrupt LTO officials.

PIRA said millions of motorists will benefit if Duterte and Tugade flush out the officials of the office who are behind overpricing of Comprehensive Third Party Liability (CTPL) insurance.

The CTPL is the minimum insurance required in the registration of motor vehicles.

It is aimed at protecting vehicle owners from liabilities to third parties and providing compensation of up to P100,000 to motor accident victims.

“Overpriced CTPL simply cannot exist without the cooperation of errant LTO officials. To stop overpriced CTPL, the incoming administration must clean up the LTO,” PIRA Chairman Augusto Hidalgo said.

PIRA, which is composed of 65 insurance companies, has set up an authentication system called COCAF to make sure that CTPL is genuine.

The association will print CTPL policies containing correct rates.

It will also come up with posters that would advise motorists not to pay more for their CTPL.

“We challenge the LTO leadership to display such posters in all LTO branches for the education of the public,” Hidalgo said.

The correct prices of CTPL are: P300 for motorcyles and tricycles; P610 for cars and SUVs (sports utility vehicles]; and P1,200 for trucks, according to PIRA.

In recent months, the LTO had come up with a Reformed CTPL (RCTPL) project that would put the entire CTPL business under one insurance provider.

According to the LTO, it was the solution to problems that have hounded the CTPL for years.

The Regional Trial Court of Makati City, however, declared the RCTPL project illegal, saying the LTO was intruding into the domain of the Insurance Commission in regulating insurance companies.

Hidalgo said PIRA is not losing hope for a permanent solution acceptable to the LTO, the Insurance Commission and the country’s insurers to the problems related to CTPL.

“We know that there are many honest officials in the LTO who just want to serve the motoring public. PIRA would like to work with them. Together with the Insurance Commission, we hope we can come up with an education campaign to make the motoring public know the importance of being insured and how they can better make use of insurance in managing their everyday risks,” he added.


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  1. Raymond Morales on

    This is with regards to the plan by LTO to implement their version of the Reformed Compulsosry Third Party Liability (CTPL) insurance coverage for private vehicles. We believed that this is another scheme being cooked by some persons purposely for a money making venture and an arena for a tool of corruption. The LTO is not the authorized government agency in matters of insurance but is the sole job and responsibility of the Insurance Commission.

    Points of argument:

    > reformed compulsory insurance system for motor vehicles will result in a virtual monopoly, since all motor vehicles are required to
    have insurance.

    > how the RCTPL will ensure that insurance companies who are not accredited as administrators will nevertheless be able to participate in the compulsory third-party liability insurance business, within the bounds of law

    > the Insurance Commission must continue to exercise regulatory supervision over insurance companies and insurance agents; all laws and regulations implemented by the Insurance Commission for the protection of the insuring public and the supervision over insurance companies are strictly complied with; the RCTPL must result in the greater participation by insurance companies in the CTPL business

  2. This CTPL should not be applicable for vehicles with comprehensive insurance as this CTPL is useless. The CTPL should only be required for old vehicles rejected for comprehensive policy b INSURANC. CTPL with comprehensive policy is to me is DOUBLE TAXATION and a LEGALIZED ROBBERY and UNCONTITUTIONAL.