Insurance firms oppose LTO’s Reformed CPTL PDF Print E-mail
Tuesday, 24 November 2015 11:25

Insurance companies are up in arms against the Reformed Compulsory Third Party Liability (RCTPL) of the Land Transportation Office (LTO) that would appoint a single administrator who will oversee dealings on car insurance.

“This is clear monopoly! Parang sinabi nila na isa na lang ang pwedeng mabuhay at yung iba ay pinatay na. Pwedeng abusushin ito ng magiging administrator,” said Salvador “Buddy” Natividad, president of Bukluran ng mga Manggagawa sa Industriya ng Seguro, during a public hearing in Quezon City.

Natividad said the appointment of a single administrator will result to disenfranchisement of other insurance companies in violation of Section 194 of Republic Act 10607.

It states: “No insurance company issued with a valid certificate of authority to transact insurance business anywhere in the Philippines by the Insurance Commissioner, shall be barred, prevented, or disenfranchised from issuing any insurance policy or from transacting any insurance business within the scope or coverage of ts certificate of authority, anywhere in the Philippines, by any local government unit or authority, for whatever guise or reason whatsoever, including under any kind of ordinance, accreditation system, or scheme. Any local ordinance or local government unit regulatory issuance imposing such restriction or disenfranchisement on any insurance company shall be deemed null and void ad initio.”

Natividad said there is no need to have an administrator because it would give undue advantage to a single insurance company in violation of the equal protection clause.

“It will cause licensed insurance agents to lose their livelihood. Having a single administrator and other insurance companies in a pool as merely reinsurers is monopoly,” he said.

Appointing an administrator who will handle the Information Technology system would result to conflict of interest because there is already an existing memorandum of agreement among Bureau of Internal Revenue, LTO and Insurance Commission, he said.

Natividad believes that the LTO did not conduct any study about the RCTPL.

More than 50,000 insurance agents nationwide will be affected with the implementation of the RCTPL.

“Done deal na raw ito. Since 1981, we have been licensed insurance agents here in LTO,” he said.

Natividad added that the group was offended by the reaction of an official of the LTO when they raised the issue of unemployment.

“Sabi namin marami ang mawawalan ng trabaho kung ipapatupad nila ang RCTPL. Ang sabi naman ng isang director sa amin ng LTO, pumunta na lamang daw kami sa DSWD kung gusto namin makakuha ng trabaho,” he said.

Navitidad said the group will bring the case to the court. “We will file a case against it. Hindi kami papayag sa RCTPL.” NewsCentral.PH