QuestionsQuestions (IC CIRCULAR LETTER NO. 018A-99)
It provides rules and procedures to curb unscrupulous practices that legitimize the registration of carnapped or illegally obtained vehicles by prescribing reporting requirements when insurance companies pay total loss claims and later dispose of the acquired vehicles.
It must submit a report using the attached form titled “Description of Motor Vehicle Paid for Total Loss” to the Insurance Commission within seven (7) days from the date the claim is paid.
It must submit a report using the form titled “Description of Motor Vehicle Paid for as Total Loss and Subsequently Sold (whole unit or parts)” to the Insurance Commission within seven (7) days from the date of sale.
It must submit the registration certificate of the vehicle to the LTO for cancellation.
Within seven (7) days after the date of cancellation of the registration certificate, using the form “Description of Motor Vehicle Paid for as Total Loss and Subsequently Sold (whole unit or parts).”
The company should not transfer the registration certificate and should instead surrender it to the LTO for cancellation.
It must not be transferred; it must be surrendered to the LTO for cancellation.
They should be reported to the Insurance Commission not later than 30 May 2000 using the applicable forms described in the circular.
Reporting must be made within the seven (7)-day period prescribed by the circular.
It indicates that the reporting requirement for total loss payments applies to all cases; no exemptions are allowed.
Use the form titled “Description of Motor Vehicle Paid for Total Loss.”
Use the form titled “Description of Motor Vehicle Paid for as Total Loss and Subsequently Sold (whole unit or parts).”
When the vehicle acquired after payment of a total loss is sold (as a whole or only its parts) together with the vehicle’s registration certificate.
By requiring timely reporting and proper handling/cancellation of registration certificates, it helps prevent legitimizing registration of carnapped or illegally obtained vehicles through insurance total-loss claims.