PIRA urges DOTr review of new CTPL validation rule

The Philippine Insurers and Reinsurers Association (PIRA) has urged the Department of Transportation (DOTr) to conduct a policy and technical review of the Land Transportation Office’s (LTO) resumption of the DBP-DCI Insurance Certificate Validation requirement for compulsory third party liability (CTPL) insurance.

In a statement issued Friday, PIRA said it supports the government’s digitization efforts to curb fraud, improve data integrity and streamline public services. However, it raised operational concerns over LTO Memorandum No. MVL-2026-0004, which requires Certificates of Cover for CTPL insurance to be accompanied by a DBP-DCI-issued Certificate of Validation.

PIRA said that during earlier implementation of the requirement, motorists and frontline implementers experienced disruptions.

Among the issues cited were vehicle owners being unable to complete registration because the LTO Land Transportation Management System required the upload of a DBP-DCI “Certification Valid for Motor Vehicle Information,” and the absence of a clearly disseminated process flow for issuing the required certification to insurance companies and other entities involved in vehicle registration.

The group noted that the new requirement introduces a parallel validation platform alongside authentication systems already in place through the LTO’s system and the Insurance Commission’s information technology platforms.

It warned that duplicative requirements could add steps, cost and uncertainty for vehicle owners without clear incremental gains in safety or compliance.

PIRA said any additional validation process should be non-duplicative and proportionate, and should undergo a transparent cost-benefit and systems-impact assessment. It also called for clear DOTr-level guidance on governance and implementation.

In letters dated 9 January 2026 and 14 January 2026 addressed to LTO and DOTr officials, PIRA requested a DOTr-led review of digitization measures affecting insurance validation and the creation of a multi-stakeholder technical working group composed of DOTr and LTO technical units, the Insurance Commission, DBP-DCI, and representatives from the non-life insurance sector and their IT providers.

The association also asked for a deferment of implementation, and that no penalties or revocations be imposed due to system-related failures or unclear procedures until implementing rules and technical specifications are issued and a phased timetable is agreed upon.

It further called for alignment of the validation requirement with DOTr Memorandum No. OSEC-2025-01227 on the digitization of LTO services and processes.

PIRA reiterated its readiness to work with the DOTr, LTO, the Insurance Commission and DBP-DCI to strengthen data integrity and anti-fraud controls while ensuring that digital reforms remain workable and accessible to the public.