LTO, IC AND ISAP DENY MONOPOLY ON COMPUTERIZED COC'S Government agencies Land Transportation Office (LTO), the Insurance Commission (IC) and the umbrella organization of the non-life insurance companies, the Insurance and Surety Association of the Philippines (ISAP), unanimously denied that there is monopoly in the implementation of the newly-conceptualized computerized car authentication system. In a congressional hearing, LTO, IC and ISAP maintained that the computerized car authentication project is aimed at eliminating the proliferation of spurious Certificates of Cover (COCs), the form used in getting car insurance policy. They made the remark during a hearing conducted by the House of Representative Committee on Good Government last August 28. The Committee acted on House Resolution Nos. 26 and 116 filed by Biliran Rep. Gerardo Espina and Malabon-Navotas Rep. Federico Sandoval II, respcetively. HR NO. 26 is seeking an investigation on the possibility that a "group of insurance companies (would) monopolize the insurance coverage of vehicles for third-party liability" as a result of the Memorandum of Agreement between LTO, IC and ISAP. HR No. 116 is also seeking investigation to the alleged anomalies wherein the "computerization of the LTO relative to securing the legally mandated third party liability insurance coverage, including the alleged absence of bidding in the engagement of the insurance consortium and that will install technical infras-structure of the system." LTO, IC and ISAP entered into an agreement to formulate a new scheme that would eliminate, if not deliberate not eradicate, fake motor insurance. Data reveals that in year 2000, the LTO registered 3,701,173 car policies while the IC had only 890,895. The discrepancy of almost two million registrants had caused the government to revenue losses of over P800 million in taxes, not to mention the billion of pesos losses that's suppose to go the industry. ISAP president Atty. Victoria Roman - Flores explained that under the new system, cars would be authenticated thru a system being implemented by the computer software company SQL* Wizard, Inc. which would give car owners the authentication number. Afterwhich, the computer company D-Tech Management would verify the authentication number. According to Atty. Flores, ISAP has 114 nonlife members, of which 100 companies issue COCs. She added that ISAP requires its members pay an annual membership fee of P40,000, but it is not compulsary. A non-life company may choose to become a member or not. For those who are not a member of the ISAP, Insurance Commissioner Eduardo Malinis said they will be required to submit their own computerized car authentication system to the Commission for approval or to do everything "manually." LTO Chief Gen. Roberto Lastimoso said during the first hearing that the questioned MOA between LTO, IC and D-Tech before was not implemented because of "legal infirmities" involved. He stressed that the SQL * Wizard and D-Tech had undergone bidding process conducted by ISAP. He said that his office and IC further examined the bidding process. Home | About Us | Products & Services | Our Portfolio | Insurance Panels | FAQs | Contact Us © Copyright 2002. Yapster e-Insurance Brokers, Inc. All rights reserved.