Garcia lashes out at teves forsiding with car insurers over ctpl

By Chino S. Leyco, The manila paper Times, filipino

Aug. 18--MACTAN, Cebu: Winston Garcia, authorities Service Insurance System (GSIS) president and full general manager, said the Finance secretary is playing as if he was the "interpreter" of buck private car insurers over the issue of the compulsory third-party liability (CTPL) insurance.

Finance Secretary Margarito Teves had before claimed that functionary of GSIS, the filipino Insurers and Reinsurers Association (PIRA), the Insurance Commission and Land transportation system Office attended a meeting where the political party supposedly expressed interest in approach up with a via media agreement on the compulsory third-party liability issue.

But Garcia denied that meeting took place and that a deal has been struck. He also accused Teves of protecting the trust of car insurers and of favoring their involvement over that of the consumers, who deserve to pay lower insurance premium.

"I can't understand why he [Teves] is so interested in this. He should uphold first the job in collection taxes, and not protecting the trust," Garcia told newsman covering Finance.

The newsman, which included The manila paper Times, were invited on an all-expense paid trip over the weekend to Cebu by GSIS.

In a offprint interview before, Teves told newsman that he already talked with executive director of GSIS and of the insurers group, and that he had suggested that they settee the issue through a via media deal. Teves claimed that Garcia, the association of car insurers, the Insurance Commission and Land transportation system Office were open to his offer.

But Garcia insisted: "There's no meeting. There was no via media."

"He [Teves] didn't even consult with us. There was no effort to behavior a meeting with us," he said.

Honorio Ramajo, president of the filipino Insurers and Reinsurers Association, had said his group met with Teves on July 31 in the Secretary's office in Makati, and Teves asked if there was a way GSIS could be allowed to offer insurance to private buyers.

But Ramajo, likewise, said a compromise deal between the opposing parties is definitely not in the offing.

"There is no way we can agree to a compromise with the GSIS," Ramajo said in a statement.

Given the meeting between Teves and the car insurer last month, Garcia is questioning the Finance secretary's motives in talking with the insurance companies and in announcing that GSIS is open to a compromise agreement.

"What's the motivation of Secretary Teves to be perceived as a spokesperson of PIRA? I challenge him," Garcia said.

In a text message to The Times on Sunday, Teves said, "We understand that the CTPL case is still pending so that it may be prudent for us to wait [for] the final resolution of the case. However, whatever the final legal outcome, what we want to see is a CTPL solution that protects the public by eliminating fake CTPL policies, provides reliable customer service in claims management and payment, and ensures prompt collection of taxes. We hope that the solution will be arrived at after transparent and open consultations with all stakeholders."

The case arose from the Department of Transportation and Communication Order 2007-28, which mandated that GSIS be the sole provider of compulsory third-party liability insurance to vehicle owners.

But on July 25, a regional trial court stopped GSIS from taking over the compulsory third-party liability insurance for motor vehicles. Judge Carlos Valenzuela of Mandaluyong City issued a 20-day temporary restraining order prohibiting the state pension fund, the Department of Transportation and Communications, and other parties from implementing a takeover.

The compulsory third-party liability is an insurance policy that shoulders any possible damage resulting from a person's use of his or her car.

Despite the restraining order, Garcia said the GSIS has started its integrated car insurance system at the Land Transportation Office on August 1, arguing that the court order covers the Department of Transportation and Communications but not the memorandum of agreement that the state pension fund has with the Land Transportation Office.

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