Court issues TRO vs integration of CTPL with LTO registration

The Makati City regional trial court has issued a temporary restraining order (TRO) against a recent Department of Transportation and Communications (DOTC) circular integrating the compulsory third party liability (CTPL) insurance coverage with the Land Transportation Office (LTO).

Makati regional trial court Judge Cesar Santamaria ordered a status quo, allowing the petition filed by the Philippine Insurers and Reinsurers Association (PIRA) in claiming the DOTC circular favored only one insurance provider.

The court ordered the DOTC to refrain from implementing its order integrating the CTPL system into the registration of motor vehicles at the LTO for 20 days, or until after Aug. 28.

A CTPL policy is a mandatory vehicle insurance that guarantees a certain amount of benefit for victims of vehicular accidents.

The DOTC order requires the integration of the issuance and payment of CTPL insurance with the Land Transportation Office Information Technology (LTO-IT) project’s system and database.

The DOTC said the move is meant to stop the proliferation of fake insurance policies and wipe out the opportunity for graft and corruption.

Local insurance firms, however, said they are already working with the Insurance Commission to come up with a better system.

PIRA said the DOTC order will also deny some 12,000 licensed insurance agents to issue insurance policies if CTPL will be issued directly by the Government Service and Insurance System (GSIS) through the LTO. –  Iris Gonzales, Rainier Allan Ronda