By FIL C. SIONIL
Philam Life and General Insurance Corporation, a local subsidiary of American International Group, favored the move of the Philippine Insurance and Reinsurers Association (PIRA) to form a consortium that will have the sole authority to issue the comprehensive third-party liability (CTPL).
"We are supportive of that move," Philam Life President and Chief Executive Officer Jose L. Cuisia, Jr. said.
He opined that PIRA’s plan "is a good alternative" to the present system, wherein vehicle owners are uncertain on the validity and authenticity of the CTPL.
"It is an alternative system," Cuisia added.
PIRA announced in September of its plan to form a consortium that will manage the issuance including collections of premiums and payment of claims of CTPL clients to be known as the PIRA COC.
Under this arrangement, the consortium will be using the banking system for vehicle registration and payment system instead of the present cumbersome system that requires vehicle owners needing to register their vehicles with the Land Transportation Office (LTO) to get a CTPL from any insurance firm or its agents.
The banks that been accredited will be receiving premium payments.
PIRA are currently in negotiations for possible financial conduits with the Bank of the Philippine Islands (BPI), Equitable PCI Bank, the Philippine National Bank, the Land Bank of the Philippines, the Rizal Commercial Banking Corp. (RCBC), and the Metropolitan Bank and Trust Co. (Metrobank).
Cuisia disclosed, though, Philam has yet to sign the memorandum of agreement, which would pave the way for the birth of the consortium. "But, we are supportive of it," said the former Central Bank Governor.
The adoption of this system would hopefully address the problem of corruption in the collection of premiums on CTPL and the non-remittance of tax revenues due government.
