More than 200 employees and agents of different insurance companies in Cebu trooped to the Land Transportation Office-7 yesterday morning to criticize the move of the Department of Transportation and Communications in giving the Government Service Insurance System the issuance of Compulsory Third Party Liability insurance for motor vehicles.
Andy Arnado, president of the Kapunongan sa mga Ahente sa Sugbo said that the move of the DOTC will affect thousands in the insurance industry.
Arnado said with the present setup they are adequately providing both CTPL and passenger insurance to the thousands of public transport operators and drivers not only in Cebu but also nationwide.
CTPL insurance coverage is a requirement for the registration of vehicles by the LTO.
The insurance coverage assures that a person hurt or killed when run over or sideswiped by a vehicle will get medical treatment or death benefits.
Arnado said their group doubts the capability of the GSIS to service the CTPL insurance business considering the agency’s inefficiency in fulfilling its obligations to millions of government employees and retirees.
In Manila, Efren de Luna, president of the Alliance of Concerned Transport Organizations, said that the current system wherein two insurance company cooperatives —the Philippine Accident Managers, Inc. and Unitrans— have 67 insurance firms under their umbrella and adequately provide both CTPL and passenger insurance to the thousands of public transport operators and drivers nationwide.
“They (GSIS) are already facing a lot of complaints from government employees and retirees on difficulties and problems with salary loans and their deductions and the retirement benefits of pensioners, and now they want to service the CTPL insurance of motor vehicle owners,” De Luna said.
De Luna said that the DOTC, represented by LTO director Albert Suansing, had already signed a memorandum of agreement with GSIS President and chief executive officer Winston Garcia, Insurance Commissioner Eduardo Malinis and Cezar Quiambao, president of LTO’s computer contractor Stradcom Corp. last June 30 for the Integrated CTPL Insurance Program.
According to the agreement, GSIS will issue the CTPL insurance to vehicles securing registration with the LTO while Stradcom Corp. will authenticate CTPL policies and ensure interconnectivity between LTO, the GSIS and the IC in the issuance of the CTPL insurance policies. — Jose P. Sollano/BRP