LTO intensifies drive vs unauthorized insurance sellers

The Land Transportation Office (LTO) has ordered all agency personnel, especially those at district and satellite offices, to accept Compulsory Third Party Liability insurance from any Insurance Commission-authorized seller during vehicle registration renewals.

LTO Assistant Secretary Vigor D. Mendoza II issued the directive Monday after receiving reports that some LTO personnel were refusing to accept CTPL from vehicle owners who did not purchase it from favored insurance sellers.

“This is not right,” Mendoza said. “As long as the CTPL is availed from companies accredited by the Insurance Commission, it is valid, and I advise all motor vehicle owners to fight for it because I will be on your side.”

He warned LTO personnel that they would face “big problems” if they were caught refusing vehicle registrations due to CTPL issues.

Mendoza’s order follows instructions from Department of Transportation Secretary Vince Dizon to improve client comfort and a meeting with transport groups, insurance companies, and other stakeholders regarding increased insurance benefits.

Insurance companies raised concerns about CTPL being sold by unauthorized groups.

Mendoza pledged to address the issue, saying, “Aside from the warning, we will also be deploying mystery customers to catch those who are not authorized to sell insurance and anyone in the LTO who is colluding with them.”

“Only those who are duly licensed by the Insurance Commission to sell insurance are allowed to sell,” he added. “Everybody should stop. Otherwise, we will conduct operations and launch legal offensives against them.”

Mendoza also urged authorized insurance agents to ensure accurate data entry into the LTO system to prevent registration delays.