Non-life insurers report rise in car theft incidence

MANILA, Philippines - A total of 117 cases of stolen insured vehicles were recorded in the first five months of 2009, according to the Philippine Insurers and Reinsurers Association (PIRA).

In 2008, there were 390 reported cases of stolen insured vehicles. PIRA expressed concern that this number may increase dramatically due to the approaching National elections.

The elections are normally accompanied by an alarming spate of robberies preceded in turn by a large number of carnapping cases. Criminal elements steal vehicles for their activities to remain undetected.

PIRA deputy chairman Michael Rellosa said the effect of the carnappings is damaging to the non-life insurance industry. The industry sells automobile, marine, fire, bonds and surety, and personal accident insurance.

“The insurance companies ultimately shoulder the value of the stolen vehicles as indemnification to the insured (vehicle owner),” Rellosa added.

For example, a total of 773 insured motor vehicles were carnapped in 2004. At an average cost of P200,000 for every vehicle, the loss amounted to at least P154 million. If the same number of vehicles were stolen today, the loss would be more than triple, considering the high cost of motor vehicle.

Curiously, the HPG said there were more than 1,400 stolen vehicles in that period. “This means the other half were not insured, or they were holding fake policies.”

In a study conducted by PIRA covering the periods 2001 to the first five months of 2009, it shows that the leading incidence of carnapping occur along the street, in parking areas, by force, and inside the residence.

From the data, the highest number of stolen insured vehicles reached 871 cases registered in 2001 but saw a steady yearly decline reaching 439 in 2007 and 390 last year.

The top five type of vehicles that are commonly stolen are Honda motorcycle, Yamaha motorcycle, Mitsubishi L300, Mitsubishi Adventure, and Toyota Corolla.

The two Mitsubishi variants are in-demand by criminals involved in bank robberies and other criminal activities. “The L300 is a favorite because of the dual sliding doors allowing ease of entry and exit,” the HPG explained in the dialogue.