The Philippine government is intensifying its crackdown on unauthorized sellers of Compulsory Third Party Liability (CTPL) insurance, with plans to deploy undercover “mystery customers” to identify illegal practices.
Vigor Mendoza II, the Assistant Secretary of the Land Transportation Office (LTO), issued a directive requiring all LTO personnel, particularly those in district and satellite offices, to accept CTPL policies from any insurance company accredited by the Insurance Commission (IC) when motorists renew their vehicle registration.
This move follows reports that some LTO employees were rejecting CTPL policies from non-preferred sellers. Mendoza warned against such actions, stressing that LTO personnel who deny registrations based on insurance provider preferences would face severe consequences.
To address concerns over unauthorized sellers, Mendoza confirmed that undercover “mystery customers” would be deployed to identify both illegal vendors and any LTO personnel collaborating with them.
Additionally, Mendoza reminded insurance agents to ensure the accurate encoding of data in the LTO system to prevent delays in vehicle registration. Notices will be posted in all LTO offices to inform vehicle owners that CTPL policies from IC-accredited providers are valid and accepted.
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