GSIS may provide CTPL insurance coverage, says IC

The Insurance Commission (IC) said the Government Service Insurance System (GSIS) may provide compulsory third party liability (CTPL) insurance of private vehicles provided that a level playing field is in place and that the public is adequately protected.

The IC, which has thrown its support to the Philippine Insurers and Reinsurers Association’s proposal to create a clearing house where all certificates of cover (COCs) are first validated and payment of premiums made through banks before one can register a vehicle, said it does not matter which entity should provide the insurance policies as long as the interest of the public is safeguarded.

"At the end of the day, the question is: Is there a level playing field? If the facilities are available to all, then there will be no question. There’s an issue on how the public will be protected. There’s no problem with GSIS, but we don’t have any decision yet on whether it’s GSIS only (that will offer CTPL) or the whole industry. We must set a level playing field," said IC chief Evangeline Escobillo.

However, Escobillo said the Department of Transportation and Communications (DOTC) has yet to make a final ruling on which entity should provide the CTPL.

The DOTC earlier sought the Department of Justice’s opinion on whether the GSIS can legally provide CTPL insurance to the public as stated under Republic Act 8291 and Presidential Decree No. 245.

"There’s no final decision on CTPL, it’s still being deliberated. Yes, there’s a DOJ opinion. It’s an opinion but it’s not saying that CTPL should be with them (GSIS). What DOJ said is GSIS can get involved in private insurances. CTPL is also for government vehicles to be insured, so GSIS is already part of the CTPL program," Escobillo said.

A CTPL insures physical injury or death resulting from vehicular accidents of up to P50,000 per person.

The GSIS, upon the prodding by the DOTC, is seeking to be the sole CTPL insurer of all private motor vehicles. Its proposal virtually eliminates the need for private vehicle registrants to get their COC from agents of insurance companies since the insurance cover will already be included in the list of fees that registrants pay to the Land Transportation Office (LTO) upon registration of vehicles.

The PIRA is also vying to be the sole provider of CTPL for private vehicles.

Some lawmakers, however, have frowned on PIRA’s proposal saying several private insurers do not have offices to service claims.