MANILA, Philippines -- A court has stopped the Government Service Insurance System (GSIS) from taking over the compulsory third-party liability insurance business in the country.

The Mandaluyong Regional Trial Court on Friday issued a 20-day temporary restraining order on the implementation of the GSIS plan to be the sole provider of CTPL insurance to all vehicle owners in the country.

During the effectivity of the TRO, the court will study the merits of a petition filed by an insurance agent to prohibit the GSIS from implementing its plan to ?monopolize? the CTPL business, which is estimated to generate P3 billion for the GSIS.

The petitioner, Belinda Martezano, said the implementation of the GSIS plan would adversely affect her income and that of other insurance agents selling CTPL coverage.

GSIS had managed to get the Department of Transportation and Communication (DOTC) and the Insurance Commission to agree to its proposal.

The three agencies recently signed a memorandum of agreement allowing the GSIS to be the sole provider of CTPL in the country.

GSIS President and General Manager Winston Garcia earlier said the GSIS? proposed system of distributing CTPL was already being pilot-tested in some areas in Metro Manila and will be fully operational soon.

Under the GSIS? proposed system, anyone who will go to the Land Transportation Office to register his or her vehicle will automatically be given a CTPL policy issued by the GSIS. The vehicle registration fee to be charged by the LTO will include the cost of the CTPL insurance coverage by the GSIS.

The GSIS insisted that its proposed system was the solution to the problem or selling fake CTPL policies by syndicates.

The GSIS plan, if implemented, will change the current practice, wherein vehicle owners get their CTPL policies from insurers of their choice. Once they secure a CTPL policy, they will be able to register their vehicles with the LTO.

The Philippine Insurers and Reinsurers Association (PIRA), which said the GSIS plan was unconstitutional because it constitutes monopoly, filed a case with the Makati Regional Trial Court against its implementation. The Makati court, however, dismissed PIRA?s case.

PIRA filed a motion for reconsideration with the Makati Regional Trial Court.

The GSIS did not honor the move of PIRA, saying a motion for reconsideration did not prohibit it from implementing its proposed CTPL system.

To prevent the GSIS from making its plan fully operational, Martezano filed the case at the Mandaluyong court.

Martezano and a group of insurance agents said the GSIS plan would put insurance agents selling CTPL policies out of jobs.