Firms slam LTO car insurance system
The Philippine Star
Insurance companies are complaining about the alleged failure of the Land Transportation Office computer system to stop anomalous practices in the issuance of compulsory third party liability (CTPL) insurance at the LTO.
Each car owner needs to get CTPL insurance in order to register the vehicle at the LTO. A certificate of coverage (COC) proves that a vehicle is already insured.
Several insurance companies said the system put in place at the LTO by computer firm Stradcom fails to detect or stop the issuance of fake or undervalued COCs or the multiple use of COCs in the registration of vehicles at the LTO.
Stradcom, the firm that bagged the LTO’s computerization project in the mid-1990s, was tapped by the Department of Transportation and Communications to interconnect the LTO computer system and that of different insurance companies that provide CTPL insurance to car registrants last year.
The move came after the contract of D-Tec, which previously handled the project, expired last year.
A source said the frequent technical problems in the LTO’s computerized registration system is especially disappointing since Stradcom charges an insurance firm P45 plus value-added tax since it assumed control last August. D-Tec charged P26 per CTPL policy it verifies and authenticates.
Insurance firms called for Stradcom to be replaced by another contractor, one that can expand the interconnectivity to all insurance companies, banks and payment centers to establish the validity and authenticity of each COC uploaded and to assure an accurate computation of insurance fees and its applicable taxes and dues payable to the government.
The insurance firms said some of them are set to ask the Senate or the House of Representatives to look into their complaints against the present set-up at the LTO. – Rainier Allan Ronda