Bacolod Rep. Monico Puentevella has sought an inquiry in aid of legislation on the proposal of the Government Service Insurance System and the Insurance Commission to take over the issuance of compulsory third party liability coverage for private vehicles.

The House has adopted Resolution No. 1073 introduced by Puentevella, a copy of which was furnished the DAILY STAR directing the committee on transportation to conduct a probe.

The GSIS has offered to be the issuer of CTPL coverage for private vehicles as it does for government vehicles while the Insurance Commission also proposed a "clearing house" for private insurance companies, a scheme which might be similar to the "unified pooling system" for private insurance companies, created by Presidential Decree 1455 which ultimately failed, the resolution said.

It also said that the government loses an estimated P268 million annually from unpaid taxes on CTPL premiums mainly because of the proliferation of fake insurance policies.

The resolution said, the proposals of the GSIS and the Insurance Commission be studied carefully.*

back to top