The Government Service Insurance System (GSIS) was prevented from providing compulsory third party liability (CTPL) insurance to owners of private motor vehicles in the Philippines which will register with the Land Transportation Office (LTO) after the Court of Appeals (CA) issued a 60 days Temporary Restraining Order. This prevented the Department of Transportation and Communication (DOTC) and the GSIS from issuing CTPL to private vehicles.
The TRO was granted by the fifth Division of CA, penned by Justice Ramon Bato, Jr. to the petitioner, the Alliance of Non-Life Insurance Workers of the Philippines (ANIWP) represented by Jubert Maun, its president.
The CA granted the TRO on the condition that the petitioner posts a P100,000 bond to answer whatever damages the DOTC and GSIS will suffer in case the petitioner is not entitled to a TRO.
According to ANIWP, the petitioner, the DOTC committed a grave abuse of discretion in issuing Department Order 2007-28 on July 5, 2007. This Order laid out the rules and regulations on the integration of the issuance and payment of the CTPL with the LTO’s information technology project systems and database. The DOTC order violated the Insurance Code of 1978 and the Constitution since it delegates the GSIS as the lone insurance entity to provide CTPL for motor vehicles to be registered with the LTO, ANIWP added.
According to ANIWP, the exclusion of other insurance companies duly authorized by the Insurance Commission to conduct business would create a state-owned monopoly and constitute restraint of trade and unfair competition. If the DOTC Department Order 2007-28 will be allowed, no other insurance company can sell CTPL insurance required for vehicle registration.
The GSIS was scheduled to start its integrated CTPL insurance system at the LTO on August 1. In view of the TRO, GSIS was restrained from issuing. The Mandaluyong Regional Trial Court also issued a separate TRO against the GSIS which granted the petition of another petitioner, the Philippines Insurers Associate Association.
This is monopoly. Motor vehicle owners will have no choice but the GSIS.
CTPL insurance policy is a mandatory requirement to all motor vehicles for registration or for renewal of registration.
Transparency, A Must
He was named Time Man of the Year. In 2002, he was knighted by Queen Elizabeth II of England. He was in the Philippines last week who spoke extemporaneously on the topic: “Leadership in Times of Crisis.
The event was held at Makati Shangri-la Hotel, Makati City. Those who listened to Rudy Giuliani paid P300,000 per table nearest the stage while those who paid P22,000 per seat were situated in the farthest sections of the ballroom. Giuliani, the former Mayor of New York City, draw a powerhouse crowd of 500 which included former Senate Pres. Franklin Drilon, former Pres. Erap Estrada and Makati City Mayor Jejomar Binay.
According to Giuliani, the people today are in the greatest need of honesty and integrity in government. The more the people can see how the government operates, the more confidence a government can develop among the people.
Giuliani’s advice for any government today is to be more transparent in governance. He spoke on what he called the “Six Pillars of Effective leadership” to overcome cynicism among the people.
“Those who focus on popularity rather than principles tend to be bogged down by small details and lose sight of the ultimate objective”, he stressed. /MP
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