GSIS set to monopolize car insurance (CTPL)
The Government Service Insurance System (GSIS) is set to monopolize the 3.5-billion peso motor vehicle insurance business after a Makati court has dismissed a petition by local insurers to stop a Department of Transportation and Communications (DOTC) plan to integrate compulsory third party liability (CTPL) insurance policies into the vehicle registration process.
Under the plan, the GSIS, through publicly held National Reinsurance Corp. of the Philippines, would provide insurance coverage for all vehicle owners. “Registrants will only have to go to the LTO instead of dealing with 120 or more insurance companies. It will also eliminate fixers,” said GSIS president Winston Garcia. The Land Transportation Office (LTO) is expected to implement the system in two weeks. Meanwhile, 60,000 insurance agents are expected to lose their jobs once this is implemented.
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July 12th, 2008 at 6:46 pm
why not? :)
July 15th, 2008 at 2:12 pm
I just hope this will be another big basket for the “selfish in-charges” to take advantage of…
July 15th, 2008 at 10:46 pm
This is unfair competition. The government again are making policies to corner the billions of pesos business that are efficiently being ran by the private companies. Honestly, I don’t understand why this is happening as I thought the government is against monopoly. I don’t see it as a good move as the GSIS has its internal problems that they themselves cannot figure out and if claims start to pile up, GSIS will be encountering more problems. I guess the 90 private companies can serve the Filipino people better than a corrupt government entity.