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  • Major transport groups oppose GSIS

    monopoly on CTPL

     

    By Jojo Perez

    Correspondent

     

    MAJOR transport groups have expressed strong opposition to the takeover by the Government Service Insurance System (GSIS) of the issuance of the Compulsory Third Party Liability (CTPL) insurance on registered passenger and private vehicles in the country from the present 67 private insurers.

    In a letter to Transportation Secretary Leandro Mendoza, the group leaders said there is no need to change a system that is working well as far as motor vehicle insurance is concerned.

    “If ain’t broke, why fix it,” part of the letter read.

    Those against the GSIS takeover are Zenaida Maranan of Federation of Jeepney Drivers Association of the Philippines; Homer Mercado of the Provincial Bus Operators Association of the Philippines; Efren de Luna of Alliance of Concerned Transport Organizations; Melencio Vargas of the Alliance of Transport Operators and Drivers Association of the Philippines; Obet Martin of Pasang Masda; Orlando Marquez of Makati Jeepney Operators and Drivers Association, along with Elena Santos of Santrans; Manuel Duran of National Transport Union; Ben Rubio of Kapisanan ng Kooperatiba ng mga Pampublikong Sasakyan; and Luring Naval of the Association of Taxi Operators in Metro Manial.

    According to Vargas, they fear that a change in administration of CTPL could inject problems to an already working organization.

    At present, the drivers and operators, including passengers, have not encountered problems in the processing of insurance claims and can easily avail themselves of the insurance benefits due them.

    The group also expressed apprehension that a GSIS takeover would mean more fake CTPL policies because of “lack of knowledge” in handling the new system.

    According to the transport leaders, they fear that the benefits their members get from the 67 private insurers every time they figure in an accident under the “All Risk, No Fault Coverage” would be lost in the reported takeover.

    Vargas, who is also the president of United Transport Koalisyon, said that under the All Risk No Fault Coverage every beneficiary can avail himself of an immediate  P400,000 insurance benefit, which they fear the GSIS could not meet once it assumes the CTPL issuance. The country has 3.6 billion vehicle owners. 

    Aside from the accident benefits, every driver is covered by a P20,000 bail bond the moment he/she figures in an accident and gets jailed under the 24/7 Emergency Ambulance Road Accident Assistance.

    The group leaders also fear that a GSIS takeover would mean more people losing their jobs even as drivers, operators and pedestrians would lose their benefits.

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    MAJOR transport groups have expressed strong opposition to the takeover by the Government Service Insurance System (GSIS) of the issuance of the Compulsory Third Party Liability (CTPL) insurance on registered passenger and private vehicles in the country from the present 67 private insurers.

    read more