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.

Authorized insurance companies to issue CTPL insurance

The Insurance Commission (IC) , in its letter of September 7, 2007 signed by Commissioner Eduardo Malinis, has furnished the Land Transportation Office (LTO) the official list of the 90 non-life insurance companies authorized by the IC to issue CTPL insurance policies.

These companies are:

1. ACE Insurance of North America
2. AFP General Insurance Corp.
3. Alliedbankers Insurance Corp.
4. Alpha Insurance & Surety Co., Inc.
5. Asia Insurance (Phils.) Corp.
6. Asia United Insurance, Inc.
   
7. Asian Life & General Assurance Corp. (Non-Life Unit)
8. Bankers Assurance Corp.
9. BF General Insurance Co.
10. Blue Cross Insurance, Inc
11. BPI/MS Insurance Corp.
12. CAP General Insurance Corp.
13. CCC Insurance Corp.
14. CICI General Insurance Corp.
15. Centennial Guarantee Assurance Corp.
16. Cibeles Insurance Corp.
17. Commonwealth Insurance Co.
18. Covenant Assurance Co., Inc.
19. Corporate Guarantee & Insurance Co., Inc.
20. Country Bankers Insurance Corp.
21. Eastern Assurance & Surety Corp.
22. Empire Insurance Co.
23. Equitable Insurance Corp.
24. Far Eastern Surety & Insurance Co., Inc.
25. Federal Phoenix Assurance Co., Inc.
26. Finman General Assurance Corp.
27. First Integrated Bonding & Insurance Co., Inc.
28. First Nationwide Assurance Corp.
29. FLT Prime Insurance Corp.
    
30. Fortune General Insurance Corp.
31. Generali Pilipinas Insurance Co., Inc.
32. Great Domestic Insurance Company of the Phils., Inc.
33. Industrial Insurance Co., Inc.
34. Insurance of the Philippine Islands Co., Inc.
35. Intra-strata Assurance Corp.
36. Investors Assurance Corp.
37. Liberty Insurance Corp.
38. MAA General Assurance Phils., Inc.
39. Malayan Insurance Co., Inc.
40. Manila Insurance Co., Inc.
41. Manila Surety & Fidelity Co., Inc.
42. Mapfre Insular Insurance Corp.
43. Mercantile Insurance Co., Inc.
44. Meridian Assurance Corp
45. Metropolitan Insurance Co., Inc.
46. Monarch Insurance Co., Inc.
47. New Hampshire Insurance Co.
48. New India Assurance Co., Ltd.
49. Northwest Insurance & Surety Co., Inc.
50. Oriental Assurance Corp.
51. PGA Sompo Japan Insurance, Inc.
52. PNB General Insurers Co., Inc.
53. Pacific Union Insurance Co.
54. Paramount Life and General Insurance Corp.
55. People's General Insurance Corp.
56. Perla Compañia de Seguros, Inc.
57. Petrogen Insurance Corp.
58. Philippine American Life and General Insurance Co. (Non-Life Unit)
59. Philam Insurance Co., Inc.
60. Philippine British Assurance Co., Inc.
61. Philippine Charter Insurance Corp.
62. Philippine Fire & Marine Insurance Corp.
63. Philippines First Insurance Co., Inc.
64. Philippine General Insurance Corp.
65. Philippine Phoenix Surety & Insurance, Inc.
66. Pioneer Asia Insurance Corp.
67. Pioneer Insurance & Surety Corp.
68. Pioneer Intercontinental Insurance Corp.
69. Plaridel Surety & Insurance Co.
70. Premier Insurance & Surety Corp.
71. Prudential Guarantee and Assurance, Inc.
72. QBE Insurance (Philippines), Inc.
73. R & B Insurance Corp.
74. Reliance Surety & Insurance Co., Inc.
75. Republic Surety & Insurance Co., Inc.
76. Seaboard-Eastern Insurance Co., Inc.
77. Security Pacific Assurance Corp.
78. Solid Guaranty , Inc.
79. Standard Insurance Co., Inc.
80. Sterling Insurance Co., Inc.
81. Stronghold Insurance Co., Inc.
82. Summit Guaranty & Insurance Co., Inc.
83. Tokio Marine Malayan Insurance Co., Inc.
84. Travellers Insurance & Surety Corp.
85. UCPB General Insurance Co., Inc.
86. United Insurance Co., Inc.
87. Utility Assurance Corp.
88. Valuegen Financial Insurance Co., Inc.
89. Visayan Surety & Insurance Corp.
90. Western Guaranty Corp. 
    

With the Commission's continuous monitoring of these entities, the list will be revised as needed.

Insurers versus DOTC

Philippine Insurers and Reinsurers Association, Inc. (PIRA) has filed a petition with a Makati court for certiorari and prohibition.  The respondents are the Department of Transportations and Communications (DOTC), the Land Trasportation Office (LTO), and the Insurance Commission (IC).

The petition is in connection with the DOTC's Department Order no. 2007-28, issued last July 5, regarding the Compulsory Third Party Liability (CTPL) Insurance.

Click here for the full story by Mr. Honesto General in his Questions of Policies Column of August 1, 2007 in the  Inquirer.Net.

GSIS: The CTPL monopoly

LATEST OPINION!

From Business Section of Inquirer.net 

QUESTIONS OF POLICIES
GSIS: The CTPL monopoly
By Honesto General
Inquirer
Last updated 05:07am (Mla time) 07/18/2007

Please read the opinion here.

Compulsory third party liability (CTPL) insurance

Since the compulsory third party liability (CTPL) insurance was the issue in the news "Non-life insurance firms raise howl over DOTC order", I think we better discuss it.

First, let’s dissect the phrase.  Three (3) elements are involved:

Compulsory means mandatory or required.

Third party.  In insurance, the first party is the "insurer"; and the second party is the "insured".  Do you remember them?  Click here.  Therefore, the third party is any party other than the insurer or insured.

Liability.  It’s a pecuniary obligation for death or bodily injury or harm done to a third party.

In short, it is a mandatory insurance for a possible liability to a third party. 

Who or what requires it?

The LAW (Chapter VI of the Insurance Code of the Philippines - ICP) requires a vehicle owner to secure a third party liability (TPL) insurance as a prerequisite to the registration of a motor vehicle with the Land Transportation Office (LTO)

Who really is a third party?

It was earlier discussed that any person other than the insurer and insured is a "third party".  But wait!  The motor car insurance policy qualifies other parties that do not fall within the ambit of a third party.

Pursuant to Section 373 (c), Chapter VI of the ICP, the motor car policy defined third party;

THIRD PARTY shall refer to any person other than a PASSENGER as defined in the law and shall also exclude a member of the household, or a member of the family within the second degree of consanguinity or affinity of the vehicle owner, or his employee in respect of death, bodily injury, or damage to property arising out of and in the course of employment. 

Are your friends or other persons, who are not your relatives, riding in your car considered third parties or passengers?

Answer:  They are considered third parties and not passengers.   In the definition of a third party, it didn't mention where the third party should be.  Whether they are inside or outside your car, they are third parties.

Passenger, on the other hand, is defined in (Section 373 (c) Chapter VI of ICP):

"Passenger" is any fare paying person being transported and conveyed in and by a motor vehicle for transportation of passengers for compensation, including persons expressly authorized by law or by the vehicle's operator or his agents to ride without fare.

In the definition, a person to be considered as passenger, it must be:

• Paying a fare, and
• On board a public utility vehicle.

Here, it mentioned where the passenger should be - on board the PUV.  Once the passenger arrived in its destination and got off the PUV, it became a third party.

Person on board a private vehicle is not a passenger.

What liability is covered?

It covers the liability of the insured in respect of the bodily injury and/or death of any THIRD PARTY in an accident caused or arising out of the use of the insured vehicle.  As such, the insurer will pay, subject to the limits of liability, all sums necessary to discharge the insured from liability.  Liability for loss or damage to property is not covered.

It is primarily intended to provide compensation for the death or bodily injury suffered by an innocent third party as a result of the operation and use of motor vehicle.  It assures the victim and or his/her dependent/s of immediate financial assistance, regardless of the financial capacity of the motor vehicle owner.

How much is the insurance coverage? 

The current CTPL coverage is P100,000.00.  Previously, the coverage was for P50,000.00 only and the increase took effect last year.  Despite the 100% increase in coverage, the premium rates remain the same in view of the good loss experience of the industry.

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Should you need further clarifications, have question/s, find an error, disagreed with the views and opinions, and/or wish to give a suggestion, kindly don't hesitate to leave comments or email at insurance@i.ph or insurance.i.ph@gmail.com

Non-life insurance firms raise howl over DOTC order

LATEST NEWS!

From Business Section of www.philstar.com  on Friday, July 13, 2007

Please read the news here.