The House committee on transportation, headed by Bacolod Rep. Monico Puentevella, yesterday started its inquiry on the proposal of the Government Service Insurance System to take over the Compulsory Third Party Liability insurance for private vehicles, a press release from solon's office said.

The move of the GSIS was earlier exposed Sen. Juan Ponce Enrile, prompting the insurance sector, particularly the Philippine Insurers and Reinsurers Association, to criticize GSIS.

Both Leyte Rep. Eduardo Velasco and PIRA Chairman Ramon Dimacali said the proposal of GSIS is contrary to its charter considering that the insurance is private in nature.

Velasco added that GSIS's proposal is also unconstitutional because it contravenes with the principle of free enterprise. At the meeting yesterday, most of the committee members expressed support to the presentation of Insurance Commissioner Evangeline Escobillo, taking into consideration the proposals submitted by two consortia of insurance companies, PIRA and RAMSI-AIT, a professional management and information technology company.

The committee also agreed that the GSIS takeover will mean a monopoly which could lead to the displacement of labor in the CTPL insurance industry. GSIS, represented by executive vice president Enriqueta Disuanco, also presented their proposal.

The House committee on transportation will hold another meeting soon with other affected sectors. They will also invite GSIS president Winston Garcia in the next meeting, the press release said.*

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