Question & AnswerQ&A (DEPARTMENT ORDER NO. 2018-020)
The main purpose is to revise the guidelines on mandatory insurance policies for motor vehicles and personal passenger accident insurance for public utility vehicles to prevent unlawful practices and ensure the proper determination and issuance of insurance policies.
The Insurance Commission has the sole and exclusive authority to determine qualified insurers for issuing the insurance policies.
The mandatory insurance policies are the Compulsory Motor Vehicle Liability Insurance and the Passenger Personal Accident Insurance.
They must secure a list of all qualified insurance companies, joint ventures, or consortiums authorized to issue the mandatory insurance policies.
They must update the list regularly and on a quarterly basis.
Applicants must show proof that they have secured the mandatory insurance policies only from Qualified Insurers.
They are prohibited from establishing offices, selling insurance covers, collecting premiums, or distributing advertising materials inside LTO and LTFRB premises.
They are prohibited from allowing or aiding prohibited activities by insurers, endorsing or favoring any insurer, selling insurance policies, or issuing unauthorized lists of insurers.
They will be permanently blacklisted from issuing insurance policies and disqualified from other programs of the DOTr, LTO, and LTFRB.
They can be held liable for Serious Misconduct under the 2017 Rules on Administrative Cases in the Civil Service, and may face other administrative or criminal liabilities.
It took effect immediately after its publication in a newspaper of general circulation and filing with the U.P. Law Center.
If any part of the order is declared unconstitutional or invalid, other unaffected provisions will remain in full force and effect.
The LTO and LTFRB are mandated to issue their own guidelines to ensure effective implementation of this Department Order.
Under Section 387 of Republic Act No. 10607, it is unlawful to operate without the required policy insurance.