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Monday, April 14, 2008

 

Transport groups, LTO hold dialogue

By James Konstantin Galvez, Reporter
 
Leaders of various transport groups held a dialogue with Stradcom Corporation to find solutions to their grievances on operational and service issues concerning the Land Transportation Office-Information Technology Project.

The transport groups raised questions on computer systems glitches, work processes and motor vehicle insurance concerns.

Alliance of Concerned Transport Operators (ACTO) President Efren de Luna cited specific instances, especially in the provinces, where the computer system could not function because of brownouts.

These delayed transactions, caused what de Luna described as unnecessary stress and anxiety on the part of their member drivers. 

He cited some instances where ACTO members showed up early at the LTO regional office to beat renewal deadlines, but were told to come back as there was no power that day.

In an interview, Stradcom officials led by Vice-President for Business Operations Ramon Reyes explained most system glitches experienced are due to forces beyond the control of Stradcom, such as power failures and intermittent phone services. He assured that the company and LTO are working together to address specific cases.

“One example was in Bicol, where the LTO bought a generator set for its regional office after typhoons downed power lines,” said Reyes.

Stradcom continues to invest heavily in the LTO-IT Project, noting that it spent P60 million in January to upgrade the system alone. These system upgrades resulted in improved operations, said Reyes.

LTO operations now feature faster transaction time, more client friendly service and increased protection for the public against fraud and inaccuracies.

Reyes said the LTO-IT Project is regularly upgraded and that if there were system problems, these were isolated cases.

Lawyer Vigor Mendoza of the United Transport Alliance Koa­lisyon (Utak) sought clarification on the computer fee allegedly collected by Stradcom for the processing of motor vehicle insurance, better known as Comprehensive Third Party liability (CTPL), an LTO requirement before a vehicle can be registered.

Earlier, LTO claimed that the campaign to weed out fly-by-night insurance companies that sell fake CTPL has been successful. 

In a statement, LTO added that affected insurance firms are desperate in looking for a way to somehow stop the crackdown, adding that they were able to stop the proliferation of CTPL-certificates of cover (CTPL-COC).

Under the COCVF, each CTPL insurance policy is locked in on a specific car owner and vehicle in the LTO-IT system that supposedly protects car owners from being victimized by bogus CTPL insurance policies.

The new system is also expected to stop unscrupulous insurance firms from issuing one CTPL insurance policy to multiple vehicles.

Some unscrupulous insurance firms are reportedly engaged in the selling of fake CTPL and are now involved in a smear campaign against Stradcom to take it out of the picture and ensure their return to illegal operations.

The said groups are claiming that the LTO has failed to stop CTPL anomalies and should replace Stradcom as the agency’s IT partner for its incompetence.

Stradcom believes that complaints are coming from these fly-by-night insurance firms, who have lost their business because of the system put up by the LTO-Stradcom that would make it impossible for them to continue their illegal transactions.

Reyes defended the P45-computer fee and explained that Stradcom put in a working, secure and verifiable system that protects the interests of car owners, LTO and the insurance companies.

Atty. Eric Pilapil, Stradcom’s Vice-President for Legal Affairs, said the Philippine Insurers and Reinsurers Association Inc. (PIRA) committed that insurance companies will absorb the computer fees, and not pass it onto the consumers.

Pilapil claimed that PIRA made this commitment during a consultative meeting with the Department of Transportation and Communications (DOTC), Insurance Commission, CTPL insurance stakeholders, PIRA and Stradcom held June 2007.

   

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Severino O. Frayna Jr., Benjie Dela Rosa
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