Guidelines on registering vehicles with total loss claims

Actual Total Loss: Physical or material loss rendering the vehicle totally destroyed or unusable.
Constructive Total Loss: Commercial loss where repair cost exceeds insured value, making repair uneconomical.

Only vehicles/components with insurance claims for Constructive Total Loss will be allowed registration.

Monthly submission to LTO Law Enforcement Service (LES) of vehicles paid insurance claims under total loss category.
Report must include:
- Photographs (front, rear, left, right sides)
- Motor Vehicle Number Plates
- Original Certificate of Registration
- Latest Official Receipt of registration fee payment

Report triggers an alarm in LTO IT system under Alarm Type aCTL for Constructive Total Loss.
Pending full system update, LES encodes vehicle details under Alarm Type aCR (Crime) within 2 hours.
Alarm screenshot forwarded to Central Office Operations Division (CO OD) for record retrieval.

CO OD requires district office where vehicle was first registered to forward certified copies of registration records for evaluation.

Applicant obtains Lifting of Alarm Form (LOA Form) from Operations Division.
Vehicle presented for inspection at nearest District Office or Motor Vehicle Inspection Center (MVIC).
MV Inspector checks engine and chassis stencils against Motor Vehicle Inspection Report (MVIR).
MV Inspector completes remarks section of LOA Form.
Documentary requirements include proof of ownership, lifting request, alarm screenshot, Insurance Commission report copy, Motor Vehicle Clearance from PNP, and authorization if representative acts for owner.
CO OD evaluates inspection results and documents:
- If vehicle roadworthy: recommend lifting alarm.
- If only engine restorable: deactivate chassis number alarm, mandate duplicate number plates, consider chassis as replacement part.
- If only chassis restorable: deactivate engine number alarm, mandate duplicate number plates, consider chassis as replacement part.
Recommendations submitted to Executive Director for approval, then forwarded to CO Traffic Adjudication Service (TAS) for implementation.

Registration processed at district office nearest the regional office, except in NCR registered at Diliman District Office.
Initial registering district office furnished copies of all related records.

Personnel violating these provisions subject to criminal and/or administrative sanctions per existing rules.
Amends Memorandum Circular No. VPT-2011-1602 dated December 8, 2011.
Revokes inconsistent memoranda, orders, or regulations.
Effective February 8, 2012, pursuant to Assistant Secretary Virginia P. Torres.