LTO chief slams court ruling stopping lower CTPL cover

A Makati court injunction against the Land Transportation Office's (LTO) efforts to lower compulsory Third-Party Liability (CTPL) insurance plan for motor vehicles would be a "big blow" to motorists.

This was the claim made by LTO chief Roberto Cabrera III as he criticized the recent order of Makati Regional Trial Court Branch 65 Judge Edgardo Caldona stopping an LTO program that would help lower CTPL insurance coverage while ensuring prompt payment of claims by motorists.

Cabrera, in a statement, said overpricing and unnecessary mark-ups on CTPL Certificate of Cover (COC’s) would remain unabated as a result of the court ruling, even as unpaid insurance claims of motorists continued to swell. 

The LTO chief said the agency's "Reformed CTPL" program provides a mechanism to streamline processing of insurance claims and lessen the financial burden on the millions of motoring public when registering their vehicles 

“The current authentication system does not address the current problem of overpricing. Motor vehicle owners are still at the mercy of unscrupulous persons who overprice the COCs,” Cabrera said.

Under the LTO program, Cabrera noted that overpricing and unnecessary mark-ups will be totally eliminated, as the premium price will be based on the Insurance Commission tariff rates. 

Despite their opposition to the Makati ruling, Cabrera said they would abide by it but would seek other legal remedies to overturn the decision.

“We will abide by the court order to defer the implementation of our reform program. And as necessary, we will seek available legal avenues as we assert the legality of the reform programs with the goal of protecting the motoring public from fixers and unscrupulous TPL insurance agents," he said.

Last November, members of the Bukluran ng mga Manggagawa ng Industriya ng Seguro Inc. staged a protest outside the LTO main office in Quezon City to opposed the RCTPL program, which the group said would lead to loss of jobs of many insurance agents.

The protesters said that under the policy, motorists would only have to choose between two companies selected by the LTO when renewing their vehicle registration. — APG, GMA News