LTO warns personnel vs promoting ‘preferred’ car insurance firms

The Land Transportation Office (LTO) reminded on Monday all its personnel, especially those assigned at district offices and satellite offices, to accept the Compulsory Third Party Liability (CTPL) presented by motorists renewing their vehicle registration if these come from insurance sellers authorized by the Insurance Commission (IC).

LTO chief Vigor Mendoza II issued the reminder after receiving reports that some erring LTO personnel were refusing to accept the CTPL presented by motor vehicle owners because these were not bought from their “preferred” insurance sellers.

“This is not right. For as long as the CTPL is availed [of] from companies accredited by the IC, it is valid. And I advise all motor vehicle owners to fight for it because I will be on your side,” Mendoza said in a statement.

“This is also a warning to our personnel. If we receive a complaint or we catch you refusing to honor a CTPL, you will have a big problem with me,” he added.

Under the Insurance Code, every vehicle owner is mandated to secure a CTPL. It is an insurance policy that shoulders the expenses of a third party who is injured or killed in an accident involving the insured motor vehicle.

Unauthorized sellers

The reminder from Mendoza was prompted by an order from Transportation Secretary Vince Dizon to make all LTO transactions comfortable to the agency’s clients, as well as a result of a recent meeting with transport groups, insurance companies and other stakeholders for an increase in insurance benefits.

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During the meeting, some insurance companies raised the issue of some CTPLs being sold by groups and businesses that were not accredited by IC.

“Aside from issuing this warning, we will also be deploying mystery customers to catch those unauthorized to sell insurance and to arrest employees of the LTO they are working in cahoots with,” Mendoza said.

“Only those who are duly licensed by the Insurance Commission to sell insurance are allowed to sell [CTPL to vehicle owners]. Everybody [else] should stop. Otherwise, we will conduct operations and launch legal offensives against them,” he added.