Court stops GSIS take over of CTPL insurance

The Mandaluyong Regional Court issued a 20-day temporary restraining order against GSIS from implementing its plan to take over the issuance of CTPL insurance from private insurance companies.  The court will study the merits of a petition filed by Ms. Belinda Martezano, an insurance agent, to stop the GSIS from monopolizing the CTPL business in the country.

GSIS move, with the approval of the DOTC and Insurance Commission, is designed to stop the proliferation of fake CTPL insurance policies.  However, it would affect the income of the private insurance companies and their agents and brokers.

Read the news:

Court stops GSIS car insurance plan
By Michelle Remo
Philippine Daily Inquirer
First Posted 10:13am (Mla time) 07/26/2008
 

Compulsory Third Party Liability Insurance

The fight over who should write the CTPL insurance is not yet over.  What’s the controversy, in the first place?

The law compels the motor vehicle owner to procure a valid Third Party Liability Insurance and present the insurance policy upon filing of application as a requirement in the registration with the Land Transportation Office (LTO).  However, there are unscrupulous entities or persons who are issuing fake insurance policies.  To curb this malpractice, several systems, procedures have been devised and implemented.  But these systems and procedures were no match to the issuers of fake insurance policies.

And now, another solution is being offered - the Government Service Insurance System (GSIS) shall monopolize the issuance of the CTPL insurance policies. The private insurance companies are decrying this solution.

First, it’s COMPULSORY to procure a third party liability insurance.  Now, it would become COMPULSORY to procure it from GSIS only.

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Mr. Honesto General wrote a column entitled: “CTPL: Cure worse than the disease” in the Philippine Daily Inquirer.  He first mentioned the history of CTPL; then his opinion.  I am encouraging you to read it here to better understand the CTPL.