The information technology contractor of the Land Transportation Office (LTO) said the car insurance industry, led by the Philippine Insurance and Reinsurance Association (PIRA), should actively go after unscrupulous insurance agents who engage in switching certificates of coverage (COCs) issued to car owners.
“By policing their own ranks, the car insurance industry can effectively put a stop to the practice of COC switching, which victimizes car owners and cheats the government of much needed revenues,” Stradcom said in a statement.
“In COC switching, unscrupulous insurance agents issue certificates — originally meant for motorcycles and tricycles — to private vehicles while COC meant for private vehicles are issued to public utility vehicles,” Stradcom added.
The IT firm said neither they nor the LTO were not to blame for COC switching cases that have taken place and could take place in the future.
Stradcom explained that under the existing interconnectivity arrangement between the LTO and the company, Stradcom and the insurance companies, led by PIRA and their own information technology partner, authenticate the CTPL and COC to ensure its legitimacy and assign a control number to each COC.
The control number, which is also given to the Insurance Commission, ensures that a COC is assigned a unique number, Stradcom said.
“This information is then uploaded into the LTO IT system, which verifies the information to further ensures there is no duplication and the COC is “locked” into one vehicle,” Stardcom said. — Rainier Allan Ronda