The insurers win the first round

Judge Cesar Santamaria of the Makati Regional Trial Court (RTC) has issued a temporary restraining order (TRO) with respect to the petition filed by the Philippine Insurers and Reinsurers Association (PIRA) opposing the DOTC ‘s Order 2007-28 issued last July 15, 2007 (read the story "Insurers versus DOTC" here).

The DOTC order provides for only one insurance company to handle all CTPL insurance in the Philippines to address the problem of fake CTPL insurance policies.  DOTC preferred National Reinsurance Corporation of the Philippines, a subsidiary of GSIS, to issue all the CTPL policies.

The TRO is effective for 20 days, while the court is reviewing the merits of the claim by PIRA that the DOTC’s order would create a monopoly in the CTPL insurance and, therefore, unconstitutional.

CTPL insurance is being required for the registration of a motor vehicle with the Land Transportation Office (LTO).  It covers the possible liability of a vehicle owner to third party for bodily injury and/or death up to P100,000.00.

Source: inquirer.net