Insurance Commission changes its position on the CTPL issue

The Insurance Commission (IC), with its new head - Atty. Ernesto Malinis, has changed its earlier position on the Compulsory Third Party Liability (CTPL) issue.  It now favors the proposal of the Government Service Insurance System (GSIS) to be the sole provider of this insurance policy to eliminate the issuance of fake CTPL insurance policies

"I studied the proposals (to address the rampant sale of fake CTPL policies), and saw the GSIS model to be superior than the others," said the new insurance commissioner.

The former IC head, Ms. Escobillo, together with non-life insurance firms, staunchly opposed the proposal for GSIS to monopolize the CTPL business. 

The Philippine Insurers and Reinsurers Association Inc. (PIRA) filed a petition before a Makati Regional Trial Court (RTC), who issued a issued a preliminary injunction on the DOTC order.  PIRA was saying the DOTC order was unconstitutional because it called for a monopoly.

However, Malinis said: "Not all monopolies are unconstitutional.  Monopoly is all right as long as it is regulated."

Malinis said that should the court eventually decide in favor of the GSIS proposal, then the IC would work on its immediate implementation.

Source: business.inquirer.net