DOF steps in to break up row over CTPL
By Michelle Remo
Philippine Daily Inquirer
First Posted 23:04:00 08/03/2008
MANILA, Philippines--Finance Secretary Margarito Teves is trying to broker a deal between concerned government agencies and members of the nonlife insurance industry that will allow them to resolve the problem involving the sale of motor vehicle insurance.
Teves said he had already spoken with officials from the Land Transportation Office, Insurance Commission, the Government Service Insurance System, and representatives of the nonlife insurance industry to persuade them to agree to a compromise.
"They were amenable to my proposal," Teves said. "They agreed to work things out."
Teves has decided to intervene because the Department of Finance oversees the functions of the GSIS and Insurance Commission.
GSIS had wanted to be the sole provider of CTPL, a business that has an estimated gross revenue of P3 billion a year.
But the Philippine Insurers and Reinsurers Association (Pira) strongly opposed the GSIS system. Pira, which represents nonlife insurance firms, said the GSIS proposal was unconstitutional because it was tantamount to a monopoly.
|
