Insurance firms want SC to decide on car compulsory insurance system

Insurance companies urged government lawyers to let the Supreme Court (SC) decide on the issue regarding the compulsory insurance system for motor vehicles. 

The Court of Appeals has issued a temporary injunction, stopping the Department of Transportation and Communications (DOTC) from enforcing the order while the case is being heard.

The DOTC, through the Solicitor General, elevated the matter to the Supreme Court.

The Philippine Insurers and Reinsurers Association (PIRA), the umbrella organization of all insurance companies in the country said the move is a positive step towards solving the issue.

PIRA said it would be best for the government to allow the Supreme Court to look into the case thoroughly and not just focus on technical errors such as the alleged forum shopping that it stated in its petition.

“The CTPL (Comprehensive Third Party Liability) case has dragged on for so long now and we’d like to see it finally decided upon based on its merits,” said lawyer Honorio Ramajo, chairman of PIRA.

The case stemmed from a DOTC order issued in 2007 that puts the CTPL insurance system of the country’s more than five million vehicles under the Government Service Insurance System (GSIS), the state pension fund manager for government workers.

The CTPL is a mandatory insurance for car owners that carries a P100,000 liability protection in case of death or injuries of third parties.

The DOTC wants to eradicate alleged fake CTPL policies by taking away completely the P3-billion business from the private sector.

PIRA and other insurance groups questioned the order as unconstitutional. They said the order would take away a legitimate business from the private sector and would result in the loss of livelihood for some 11,000 duly licensed insurance agents.

Motorist groups also opposed the order as they do not want to be insured by the GSIS which is already having problems serving the needs of government pensioners.

Insurance companies welcomed the government’s recent move to ask the Supreme Court to look into the case involving the compulsory insurance for private vehicles.

However, the companies urged government lawyers to let the High Court decide on the merits of the case and not on technical matters.