LTO chief, Asst. Sec. Vigor D. Mendoza II
The Land Transportation Office (LTO) warned on Monday, March 17, all its personnel assigned to motor vehicle registration to refrain from rejecting Compulsory Third Party Liability (CTPLs) that were not obtained from their favored insurance agents and companies.
LTO chief, Assistant Secretary Vigor D. Mendoza II issued the warning after receiving reports that some erring LTO personnel are in cahoots with insurance agents, adding that the modus is to reject the CTPL presented by motor vehicle owners to compel them to avail of the CTPL of their favored agents and companies.
“This is not right. For as long as the CTPL is obtained from companies accredited by the Insurance Commission, that is valid. And I advise all motor vehicle owners to fight for it because I will be on your side,” said Mendoza.
“I also warn our personnel that once you are subjected to a complaint in relation to this or are caught rejecting CTPL even if it is valid, you would have a very big problem,” he added.
The issue was also discussed during the meeting between LTO officials and insurance companies on the issue of raising the insurance benefits, as well as facilitating the processing of claims as instructed by Department of Transportation Secretary Vince Dizon.
During the meeting, representatives of the insurance companies raised the issue of CTPL being sold by groups and businesses that are not accredited by the Insurance Commission.
In order to ensure that his instruction is complied with, Mendoza said he will be deploying mystery applicants to catch both unauthorized sellers of CTPL and their cohorts in the LTO.
“Only those who are duly licensed by the Insurance Commission to sell insurance are allowed to sell. Everybody should stop. Otherwise, we will conduct operations and launch legal offensive against them,” Mendoza stressed.
Mendoza said they will also be posting notices in all LTO offices informing motor vehicle owners that their CTPL is valid for as long as they are obtained from Insurance Commission-accredited companies.