Posts Tagged ‘LTO’

The BIR is strengthening its tax collection system and they partnered with the Insurance Companies and LTO.

“For Motor Car insurance requirement with CTPL cover, please be informed that the Assured’s Tax Identification Number is necessary to complete the authentication transaction under the COCAF system per BIR Requirement which will take effect on May 10, 2010. Authentication cannot be processed unless TIN is encoded being a mandatory field.” (source:PGAI Ortigas)

This is actually a good sign for the legitimate insurance companies, agencies like us. Through this system, a lot of things can be achieved. These are:

1. Authenticity of the TPL or COC. Because there are lots of TPL insurance that are fake!!! BEware!

2. Improved TAX collection.

3. Legitimacy of Car Ownership. These will be exhausting for the Used Car Sales Industry. If they bought a 2nd hand car and opted not to change ownership, how can they renew their registration if they don’t know the TIN of the existing registered owner. They will now be forced to change ownership right away. If this happens, automotive related crimes will surely go down. It will be easier for the government to trace the kidnappers and carnappers if the system is successful.

Well, we hope the incoming government will carpe diem! Good luck!

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The LTO or DOTC should make some actions on the road accidents with relations to Motorcycle. I have been getting quite a lot of accident claims from my clients versus motorcycle riders. A couple of the cases scenario were both the motorcycles rammed into my clients vehicle unfortunately and logically, the motorcycle rider always gets the most injuries. During these unwanted scenarios, my clients respond immediately to the hospital bills to lessen the burden even if there is no verdict yet. BUT the motorcycle rider or their relatives always asks for monetary support immediately. And the police inspector always favors the motorcycle riders or their family and pressures the assured. This shouldn’t be the case! The officer in charge should be equal and  should not favor anyone and should stand as an arbiter and should educate both parties of there responsibilities and liabilities.

As an insurance agent, no monetary support should be given immediately. It should go through a process. Give time for the insurance company to investigate and evaluate the damages incurred to the motorcycle or any other property. No one has the right to give amounts pertaining to damages without any investigation and the most credible party to that is the adjuster of the insurance company.

The motorcycle rider and their family should consider that they may be at fault and there is a possibility that the vehicle owner is not obligated to pay you. Its a 2 party accident, if the verdict goes to the car owner then you wont get any thus should pay the vehicle owner for the damages. Uneconomically, here in our country we don’t look in to who’s at fault but who’s injured, and always ends up that the vehicle owner pays even without the verdict.

The LTO or DOTC or any other agency should look into this problem. They should impose a law or guidelines for traffic officers,drivers, pedestrians. A clear one without loopholes, if they have one, where is it? Why aren’t we aware? If this is always the case, we are sending a wrong signal to everyone using the roads.

Are you also a victim?

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CTPL ( Compulsory Third Party Liability) What is CTPL? It is actually a “liability” insurance. In layman’s term, it is a contract of assuring the general public that the owner of the vehicle shall be able to pay him or her in case of bodily injury due to the vehicle owner’s negligent use of his car. For instance, the driver of the vehicle accidentally ran over a pedestrian, the pedestrian is assured that he can claim reimbursement for the hospitalization costs he spent, or at least some. CTPL under the law has a coverage of only P100,000. More than this amount, the offending party shall bear the cost. That is for the protection of the pedestrian who is probably equally negligent anyway. But how about if the driver swerved his vehicle to avoid the pedestrian and hit a tree instead? Or worse, he hit the pedestrian and hit the tree also totally wrecking his car?** The buying period of your CTPL should be at the same time that you will be registering your car at the Land Transportation Office. Be also wary of the price of CTPL as this has a tariff rate from the Insurance Commission.

For Private Cars like sedans, 2 doors or any privately driven sedan the total amount should be 610.40

For Commercial Vehicles like pick-ups, FB vans, Vans, AUVs and SUVs the total amount should only be 660.40

There could be slight differences from price but it should not be more than a P100.

For brand new vehicles, the CTPL covers 3 years from the time of your purchase or first registration, as you can see, CTPL are pre-requisite to LTO registration and sticker. The main objective here is that your vehicle is exempted from the yearly Smoke emission tests conducted every time that you will register your car. Since your vehicle is brand new, the government assumes that your vehicle will pass the emmission tests and delays it on your cars 4th year. At this time, your vehicle is due for the yearly registration and smoke emission testing. The total amount of the 3 yrs TPL should only be P1660.40, again there could be price diffrences but it should be not more than P100.

For free consultation,  please contact us at the given numbers below. Need to know more about your car’s comprehensive insurance and want to get sample quotations? Visit or contact us at Insurance Experts, Inc. also known as USGIA-GH Corp. ( Suite 1407 Annapolis Wilshire Plaza Annapolis St. Greenhills, San Juan). DL 724-5140 or email me at ric_engee@yahoo.com

(** taken from Business mirror article by J. Tiongson)

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