ARTA to LTO: Remove TPL requirement for registration of insured vehicles

Vehicles with comprehensive insurance policies should no longer need CTPL
by Leandre Grecia | Jul 15, 2021
PHOTO: TopGear.com.ph

If the Anti-Red Tape Authority (ARTA) will have its way, then it seems more changes are up for the motor vehicle registration system of the Land Transportation Office (LTO).

In a recent statement, ARTA director general Jeremiah Belgica put forward his recommendation to remove the compulsory third-party liability (CTPL) insurance from the LTO’s MV registration process for vehicles that are already covered by a comprehensive automotive insurance policy.

TPL is basic car insurance that every motor vehicle owner is required to avail when registering his vehicle with the LTO. This applies to all types of vehicles, including private cars, commercial vehicles, and motorcycles. Belgica said that this “appeared to be redundant and inflicting additional expense” to motorists.

“I implore them to look into it and reconsider waiving the requirement provided that the vehicle owner can show proof of comprehensive insurance,” said Belgica. “As we seek to eliminate overregulation and unnecessary requirements, this would reduce the burden on the transacting public, streamline the vehicle registration process, and promote good regulatory principles.”

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Belgica added that this is in line with the agency’s anti-fixing campaign. He said that in one of the ARTA’s entrapment operations, it discovered that the establishment offering TPL insurance was also “collaborating with the fixers and exploiting the public by facilitating medical, insurance, and emission testing.”

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ARTA has already written a letter to the Insurance Commission and the LTO, but have yet to receive a response. More as we have them, so watch this space. For now, tell us what you think in the comments.

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PHOTO: TopGear.com.ph
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