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.