Question & AnswerQ&A (LTO MEMORANDUM CIRCULAR NO. ACL-2010-1271)
The Insurance Commission (IC) has jurisdiction over contracts of insurance and insurance companies in the Philippines.
The Bureau of Internal Revenue (BIR) is responsible for the assessment and collection of all national internal revenue taxes, fees, and charges on insurance policies.
Insurance coverage, specifically Compulsory Third Party Liability (CTPL) and Comprehensive Insurance policies, is a mandatory requirement for vehicle registration at the LTO.
The MOA aims to utilize the Insurance Commission COC Gateway (ICG) and the Enhanced Certificate of Cover Verification Facility (ECOCVF) for online and real-time authentication and verification of Certificates of Cover (COCs) to ensure valid insurance coverage and proper tax collection for CTPL and Comprehensive Insurance policies.
The ICG serves as the sole electronic facility for recording all Certificates of Cover (COCs) as proof of coverage under CTPL and Comprehensive Insurance for motor vehicle registrations.
The ECOCVF serves as the sole verification and tax collection facility for all Certificates of Cover (COCs) as proof of coverage under CTPL and Comprehensive Insurance for motor vehicle registrations.
The Insurance Commission shall impose administrative sanctions upon insurance companies, their directors, officers, and agents for any willful failure or refusal to comply with the requirement to submit or file COCs into the ICG.
The Land Transportation Office (LTO) is responsible for performing, hosting, managing, and maintaining the ECOCVF.
The MOA became effective on February 16, 2010.
Only insurance policies recorded through the Insurance Commission COC Gateway (ICG) and verified through the Enhanced Certificate of Cover Verification Facility (ECOCVF) shall be accepted as requirements for transactions in the LTO IT System.
The ICG and ECOCVF replaced the previous systems called Certificate of Cover Verification Facility (COCVF) and COCVF System A.
The MOA has been published in full text nationally within the BIR through Revenue Memorandum Circular No. 7-2010 dated January 20, 2010.