THE Land Transportation Office (LTO), in collaboration with the Insurance Commission, is advocating for significant reforms in motor vehicle insurance policies, particularly the Comprehensive Third Party Liability (CTPL) coverage. The push for reform follows the tragic truck accident at the Katipunan Flyover in Quezon City last month, which resulted in four fatalities and over 20 injuries.
LTO Chief, Assistant Secretary Atty. Vigor D. Mendoza II, shared details of a recent meeting on January 28 with Insurance Commission head Atty. Reynaldo Regalado. During the discussion, both parties emphasized the urgency of policy changes, focusing on the inadequate benefits and delayed claims of CTPL insurance, which has led to growing dissatisfaction among motorists.
Asec Mendoza highlighted that many vehicle owners view CTPL as a mandatory but ultimately useless expense, as the benefits are often minimal and claims processing takes too long. He stressed the importance of changing this perception and making the insurance more relevant to motorists’ needs.
A key focus of the dialogue was increasing the CTPL benefits for accident victims. In the case of the Katipunan Flyover accident, only P200,000 was disbursed for all the victims, an amount Asec Mendoza deemed insufficient to cover funeral costs or medical expenses. To address this, the LTO is working with the Insurance Commission to ensure that increased benefits will not lead to unaffordable premiums.
Another aspect discussed was the timely release of insurance payments. Asec Mendoza emphasized the need for faster assistance, especially in emergency situations where immediate funds are critical for hospitalization. To improve this, the LTO is exploring options such as establishing a hotline for immediate insurance-related concerns during accidents.
Additionally, Mendoza applauded Sterling Insurance for swiftly releasing P200,000 to the truck owner involved in the Katipunan Flyover incident and acknowledged the efforts of Hermano Oil Manufacturing and Sugar Corporation, which has committed to providing additional financial support to the victims.
As part of ongoing efforts to improve motor vehicle insurance policies, the LTO aims to implement reforms that will better protect accident victims and ensure that insurance coverage is both effective and accessible to all motorists.