Thursday, July 24, 2008

Compulsory Third Party Liability Insurance

The fight over who should write the CTPL insurance is not yet over. What’s the controversy, in the first place?

The law compels the motor vehicle owner to procure a valid Third Party Liability Insurance and present the insurance policy upon filing of application as a requirement in the registration with the Land Transportation Office (LTO). However, there are unscrupulous entities or persons who are issuing fake insurance policies. To curb this malpractice, several systems, procedures have been devised and implemented. But these systems and procedures were no match to the issuers of fake insurance policies.


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