Previous Guidelines and Issues with Compliance
- The Land Transportation Office (LTO) and Land Transportation Franchising & Regulatory Board (LTFRB) previously issued guidelines regarding compulsory motor vehicle liability insurance and passenger personal accident insurance.
- Current issues include unauthorized marketing activities by insurance companies and agents inside LTO and LTFRB premises.
- Allegations exist of some LTO and LTFRB personnel being involved in the unauthorized selling and promotion of insurance policies.
Transfer of Authority to the Insurance Commission
- The Department of Transportation (DOTr) orders that the evaluation and qualification of insurance providers shall be under the exclusive authority of the Insurance Commission.
- This transfer aims to eliminate corrupt practices and proprietary interests within LTO and LTFRB related to insurance policy issuance.
Assessment and Evaluation of Insurance Providers
- The Insurance Commission is solely responsible for determining the qualifications and requirements of insurance companies, joint ventures, or consortiums capable of providing mandatory insurance policies.
List of Qualified Insurers
- LTO and LTFRB must secure from the Insurance Commission an updated list of all qualified insurers authorized to issue insurance policies.
- This list must be obtained regularly, at least quarterly.
Posting and Choice of Insurance Providers
- The LTO and LTFRB are mandated to post the list of qualified insurers conspicuously within their offices.
- Applicants are free to select any qualified insurer and must pay premiums only at the insurer's authorized sites.
- No Certificate of Registration (COR) or Certificate of Public Convenience (CPC) will be issued unless the insurance was procured from a qualified insurer.
Prohibited Activities for Qualified Insurers
- Qualified insurers are prohibited from:
i. Establishing or maintaining offices within LTO and LTFRB premises.
ii. Employing or assigning personnel to sell or collect insurance premiums inside LTO and LTFRB offices.
iii. Distributing giveaways or promotional materials inside these government premises.
Prohibited Activities for Government Personnel
- DOTr, LTO, and LTFRB personnel are strictly forbidden from:
i. Permitting or facilitating prohibited activities by insurers.
ii. Endorsing or recommending any insurer to applicants.
iii. Selling insurance policies or collecting premiums on behalf of any insurer.
iv. Issuing or furnishing any lists of insurers other than those authorized by the Insurance Commission.
Sanctions for Violations
- Violations by qualified insurers lead to permanent blacklisting from issuing insurance policies and disqualification from DOTr-related programs.
- Violations by government personnel constitute serious misconduct under civil service rules and may incur administrative and criminal liabilities.
Implementation and Administrative Provisions
- LTO and LTFRB shall issue additional guidelines to enforce this order effectively.
- A separability clause preserves the validity of unaffected provisions if any part is declared invalid.
- Previous orders inconsistent with this directive are repealed or modified accordingly.
- This order takes effect immediately upon publication and proper filing.