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.