Transport groups hit GSIS takeover of CTPL insurance system

TRANSPORT coalition 1-United Transport Koalisyon (1-Utak) and non-life insurance firms yesterday raised concerns over the planned takeover of the compulsory third party liability (CTPL) insurance for motor vehicles by the Government Service Insurance System (GSIS).

Operators of public buses, jeepneys and taxis categorically stated that they are against GSIS plan as it could disrupt and eventually ruin the existing CTPL system for the public transport sector.

"Across the board the public transport system is against the GSIS takeover. Yes, there's room for improvement but it's working and there's no need to change the system," 1-Utak chairman Vigor Mendoza said. "From buses to jeepneys and taxis (operators and drivers), all are against the GSIS takeover. Why venture into a new system when you have a tried and tested existing system?"

The Federation of Jeepney Operators and Drivers Association of the Philippines (Fejodap) said it doubts GSIS capacity to provide the same quality of service as the current CTPL system. "Hindi na dapat makialam ang GSIS sa insurance ng public utility. Magsasama-sama kami sa pagkilos para tutulan ang plano ng GSIS, hindi talaga kami payag. Nasa likod kami ngayon ng mga insurance companies," Fejodap president Zenaida Maranan said.

The groups said drivers and operators, including passengers, have not encountered any difficulty in the current system. Their leaders said a GSIS takeover might mean more fake CTPL policies because of its "lack of knowledge" in handling the new system. They also expressed fear that the P400,000 insurance benefit their members promptly get from the 67 private insurers everytime they figure in an accident under the "All Risk No Fault Coverage" will not be given them by the GSIS once it assumes CTPL issuance.

Aside from the accident benefits, they said every driver in an accident is given a P20,000 bail bond under the 24/7 Emergency Ambulance Road Accident Assistance.

"GSIS need not take over the issuance of CTPL. Mas magiging magulo lang at baka walang sistema, hindi tulad ngayon madaling nakakakuha ng benefits ang mga tsuper at operators, baka lalo ding maglipana ang mga pekeng CTPL policy kapag ang GSIS na ang humawak," Melencio Vargas of the Alliance of Transport Operators and Drivers Association of the Philippines said.

The Philippine Insurers and Reinsures Association of the Philippines said the GSIS plan shows that government can take over any private firm it wants as it was during the Martial Law years under Marcos.

The Association of Lawful Advocates for Responsible Motoring (ALARM), on the other hand, scored the protesting insurance agents and transport groups which insist on the old system. The group called supporters of the old CTPL system as buccaneers no different from bank robbers. "Next they'll ask the government to coddle bank robbers and kidnappers so they too can feed their families," Alarm said in a statement.

Alarm said the CTPL agents want government protection so they can continue selling fake motor vehicle insurance policies to the unsuspecting public. They stressed that sellers of fake CTPL insurance should be jailed. "Two out of three CTPLs sold are fake. Thus, the gall of these buccaneers to ask the President to stop the DOTC from implementing its unified CTPL procurement system so they can continue duping us, the public," Alarm spokesman Michael Viray claimed.