Gov’t revokes insurance firms’ licenses
MANILA, Philippines—The Insurance Commission (IC) has revoked the licenses of two insurance agencies for “a string of violations, including tax evasion, committed since 2005.”
In a statement, the IC said it had issued an order on April 28 suspending Universal Insurance Transport Accident Agency Solutions Inc. (Unitrans) and Passenger Accident Management and Insurance Agency Inc. (Pami).
Unitrans and Pami serve as agents for Stronghold Insurance and UCPB General Insurance, respectively, which won the bidding to sell mandatory personal accident insurance products for public utility vehicles.
These two agents “cannot sell insurance products of their insurers anymore nor can they accept application and pay claims from those insured,” Insurance Commissioner Emmanuel F. Dooc said.
Even then, the IC’s licensing division said Stronghold Insurance and UCPB General Insurance can process claims “if the LTFRB permits it.”
In a letter to Pami president Eduardo R. Atayde, Dooc cited P928,000 worth of “giveaways and donation” and P7.69 million in consultancy fees paid to Telesis Consultancy Services as adviser.
Aside from that, Pami was found to have paid P41.47 million in “service fees” to “liaison officers of various transport groups” and around P30 million in “marketing expenses” paid to Philippine Jeepney Operators and Drivers/Alliance Foundation (PJODAP) and Public Transport Workers Foundation Inc.
Dooc said the payment of service or “referral fees” to liaison officers was “tantamount” to graft and corruption.
The commission also found out that Unitrans failed to remit a total of P35.43 million to the government in 2009, representing Stronghold Insurance’s taxes.
