Lawmaker wants registration of wrecked cars cancelled

MANILA, Philippines - The chairman of the House committee on transportation has pushed for the cancellation of the registration of totally wrecked vehicles to help stop car thefts in the country.

Southern Leyte Rep. Roger Mercado filed House Bill 4926, which seeks to cancel the registration of totally wrecked vehicles that are covered by an insurance policy.

A “scheme being perpetrated by car thieves will be avoided through the cancellation of registration of totally wrecked vehicles,” Mercado said.

Under this scheme, he said car thieves will snatch cars similar in make and model to totally wrecked vehicles, and make it appear that the stolen vehicle is the one that appears in its registration details.

“This scheme is giving the authorities a hard time apprehending stolen vehicles due to the fact that the legitimate registration of totally wrecked cars covers up the spurious registration of stolen vehicles,” Mercado said.

He said the measure does not cover totally wrecked cars that are not covered by an insurance policy.

Under the measure, the Land Transportation Office (LTO) is mandated to cancel the registration of totally wrecked vehicles that are covered by an insurance policy for its replacement in case of damage or theft.

The insurance company that issues the insurance policy of the totally wrecked vehicle whose registration is due for cancellation is directed to report to the LTO the status of said vehicle.

Under the bill, the reportorial requirements stated in the measure shall not hinder the insurance companies in compensating the owners of totally wrecked vehicles of what is due them in accordance with the insurance policy.

Violators shall be penalized with a fine of P200,000.