Insurance giants express support for new vehicle insurance program

MANILA, Philippines - The biggest companies in the Philippines’ insurance industry expressed support for the Integrated Insurance Registration System which will be implemented by the Land Transportation Office (LTO) in registering all motor vehicles. In a statement, the insurance companies—including the National Reinsurance Corp of the Philippines (PhilNaRe)—also indicated their intention to participate in the system adopted from the Compulsory Third Party Liability (CTPL) model of the Government Service Insurance System (GSIS). The CTPL is an insurance policy providing up to P100,000 in coverage to third parties killed or injured in accidents involving insured vehicles. Securing CTPL is mandatory before a vehicle can be registered with the LTO. The system was approved by the Department of Transportation and Communications (DOTC) under department order 2007-28 issued July 5, 2007. The overhauling of the CTPL system is a joint undertaking of the DOTC with the Insurance Commission, LTO, GSIS and STRADCOM. “We take note of the adoption of the GSIS CTPL Reform Program by the Insurance Commission (IC) as reflected in the memorandum of agreement dated July 1, 2008, which the IC signed with the DOTC, LTO, GSIS and STRADCOM," said the insurance firms in a joint statement. “This expression of solidarity is in line with our goal to provide the public only the best insurance products for their needs. Likewise, the time has come to put an end to the long-festering problem of the proliferation of fake CTPLs," the statement added. Besides PhilNaRe, among those which expressed support for the new system include the AFP General Insurance Corporation, BPI Mitsui, Sumitomo Insurance Corp., Mapfre Insular, Pioneer Insurance & Surety, Pioneer Intercontinental, Seaboard Eastern, Empire Insurance, Manila Surety and Fidelity Co., Monarch Insurance, Visayan Surety, Covenant Assurance Co., Eastern Assurance, First Nationwide Assurance; Sterling Insurance Co., Value Life Financials, New India Assurance Co., PNB General Insurance Co., Malayan Insurance, Tokio Marine Malayan, Malayan Zurich, Meridian Insurance Corporation, Allied Bankers Insurance; Asia United Insurance, Cibeles Insurance, Pioneer Asia Insurance, Philippine General Insurance Corp., Phil. British Insurance Co., Insurance Co. of the Philippine Island, Equitable Insurance Corporation, Finman General Assurance Corp., FLT Prime Insurance Corp., Stronghold Insurance, Premier Insurance, Utility Assurance Corp., and UCPB General Insurance Corp. Under the new scheme, the GSIS will farm out the provision of CTPL policies to accredited insurance and reinsurance firms at much lower prices than the old CTPL system. - GMANews.TV