Friday, July 18, 2008 Gov't won't touch CTPL on PUVs
TRANSPORTATION Secretary Leandro Mendoza on Thursday heeded the call of transport groups not to touch the Comprehensive Third Party Liability (CTPL) on public utility vehicles (PUVs).
"It's good news. There's no problem, meaning the current two-group system under Philippine Accident Managers Insurance, Incorporated (Pami) and Universal Transport Insurance Solutions, Incorporated (Unitrans) will remain," said Pasang Masda president Obet Martin.
Martin made the announcement after a three-hour meeting with Mendoza at the Department of Transportation and Communications (DOTC) national office in Mandaluyong City.
The DOTC chief's decision will mean that the plan of the Government Service Insurance System (GSIS) to takeover the issuance of CTPL of public transport will not push through.
"We should follow what the people want. You represent the transport sector and you must know what would be good for the public," said Martin quoting Mendoza.
"We are thankful to Secretary Mendoza for heeding our clamor. He reminded us what he had promised to us that he will not do anything that will put the transport group in a disadvantage position," added Zenaida Maranan of the Federation of Jeepney Drivers Association of the Philippines (Fejodap).
Owners of PUVs get their CTPL from either Pami or Unitrans.
This set-up was on the verge of collapsing after the heads of the DOTC, Insurance Commission, Stradcom Corporation and GSIS inked a memorandum of agreement giving the pension fund agency the exclusive right to issue CTPL certificates to vehicle owners registering their cars with the Land Transportation Office (LTO).
The move was seen by the transport group as a prelude to taking over also the CTPL business at the Land Transportation and Franchising Regulatory Board (LTFRB).
Also present during the marathon meeting with Mendoza were Homer Mercado of the Provincial Bus Operators Association of the Philippines (PBOAP), Efren de Luna of Alliance of Concerned Transport Organizations (Acto), Melencio Vargas of Alliance of Transport Operators, Orlando Marquez of the Makati Jeepney Operators and Drivers Association (Mloda), Orlando Marquez of Makati Jeepney Operators and Drivers Association (Mjoda), and Elena Santos of SanTrans.
The transport groups said they are not encountering any problem with the present system.
They said Pami and Unitrans policies have "All Risk No Fault Coverage", which is a big relief every time they encounter accident.
Under the "All Risk No Fault Coverage," every beneficiary can avail of an immediate P400,000 insurance benefits, claims paid within five days, 24-hour ready ambulance, and P20,000 bail bonds for drivers, and fast claim processing.
Maranan and Martin did not disclose if Mendoza will also order the suspension of the GSIS takeover of the CTPL on private cars.
On Wednesday, GSIS president Winston Garcia said the new CTPL which is already "pilot-testing" in some areas in Metro Manila would rid the car insurance industry of fake or spurious CTPL peddled by unscrupulous insurance firms even as he chided the "cartel" which he said corners majority of the CTPL sold the car owners.
Two of every three CTPLs sold to the public are of spurious nature.
Aside from ridding the industry of fake CTPL, Garcia said the new system would also lessen the financial burden on car owners.
According to Garcia, transactions will be P575 cheaper per insurance policy for privately-owned vehicles like cars and jeepneys, compared to the present CTPL cost of more than P900.
Under the present system, private vehicles are collected P900 while PUVs including jeepneys are charged P950. Light trucks are charged P980 while P350 are collected from motorcycle owners. (AH/Sunnex)
