Question & AnswerQ&A (LTO MEMORANDUM CIRCULAR NO. VPT-2011-1631)
Actual Total Loss refers to a provision in the insurance contract that pertains to physical or material loss where the motor vehicle is totally destroyed or rendered useless for its purpose.
Constructive Total Loss pertains to commercial loss where the cost of restoring the motor vehicle exceeds its insured value, rendering it beyond economical repair.
Only motor vehicles and/or their components that have been granted insurance claims for Constructive Total Loss are allowed registration.
The Insurance Commission must submit a monthly report containing photographs of the motor vehicle, motor vehicle number plates, original certificate of registration, and latest official receipt of payment of registration fees for all motor vehicles that have been paid insurance claims under the Total Loss Category.
The alarm serves as a notification system in the LTO IT system to track motor vehicles reported under total loss. Initially, before the aCTL alarm type is available, personnel encode it under Alarm Type aCR=CRIME using the file, plate, engine, and chassis numbers.
The Motor Vehicle Inspector at the Motor Vehicle Inspection Center (MVIC) or North Motor Vehicle Inspection Center (NMVIC) in NCR conducts an ocular inspection and verifies engine and chassis stencils against registration reports.
Documents required include proof of ownership, request for lifting of alarm, printed screenshot of alarm details, copy of the Insurance Commission report, Motor Vehicle Clearance Certificate from the PNP Highway Patrol Group, and authority to transact for representatives with IDs.
If only the engine can be restored, the chassis number is deactivated and vice versa. Duplicate number plates are mandatory, and the restored part may be used as a replacement component. The alarm on the vehicle is modified accordingly and made permanent for the part that cannot be restored.
Registration should be processed at the district office nearest the regional office where the vehicle is located, except in NCR where the venue is the Diliman District Office.
Personnel found violating the provisions shall be dealt with criminally and/or administratively in accordance with existing rules and regulations.