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Junk CTPL — partylist solon

January 15, 2025 Jester P. Manalastas 105 views

A party-list solon is pushing for the abolition of the compulsory third-party liability (CTPL) insurance for motor vehicles.

Bagong Henerasyon party-list Rep. Bernadette Herrea described the CTPL as an outdated and redundant regulation that imposes unnecessary burden on ordinary Filipinos.

In her privilege speech, Herrera said that the CTPL insurance requirement, which costs around P1,200 annually and is being mandated by the Land Transportation Office (LTO) during vehicle registration, places a disproportionate burden on vulnerable sectors such as jeepney drivers, delivery riders, and solo parents who depend on every peso to support their families.

The lady solon then filed a bill seeking to remove the CTPL requirement, while also emphasizing that the LTO already has the authority to halt its enforcement without the need for new legislation.

House Bill No. 11275 proposes the abolition the CTPL in the event that the motor vehicle owner has already obtained a comprehensive motor vehicle insurance policy.

Herrera argued that comprehensive insurance fulfills the same purpose as CTPL while offering broader protection.

“While the principle behind requiring CTPL insurance is commendable, its redundancy when paired with comprehensive insurance negates its utility. Comprehensive insurance alone already fulfills the intent of ensuring accountability and financial security, while also streamlining the registration process and reducing the financial burden on motorists,” Herrera said.

She stressed that motor vehicles are essential for survival, particularly for low-income earners.

Herrera noted the disproportionate effect of the CTPL insurance requirement on struggling families, especially solo parents.

She explained how the annual cost, though seemingly minimal, could instead be used to meet urgent household needs.

“Imagine a single parent raising one, two, or even three children on their own. Every peso they earn is carefully budgeted. That P1,200 spent on CTPL insurance could have been used to buy additional school supplies, pay for electricity, or purchase the medicine their child desperately needs,” she said.

Herrera argued that the CTPL insurance requirement is no longer relevant, as most motorists already secure comprehensive motor vehicle insurance, which provides broader protection.

She also noted that comprehensive insurance is already mandatory for vehicles financed through bank loans.

At the same time, she criticized the inefficiency of CTPL insurance, citing the difficulty of claiming benefits.

“The sad truth is that hardly anyone claims from CTPL insurance. The process is often cumbersome, riddled with red tape, and inaccessible to those who might benefit from it,” Herrera said.