LTO to Crack Down on Illegal Insurance Agents

Manila: The Land Transportation Office (LTO) on Monday announced its crackdown against the illegal selling of Compulsory Third Party Liability (CPTL) insurance required for vehicle registration. In a news release, LTO Chief, Assistant Secretary Vigor Mendoza II, stated that CPTL sold by groups and businesses not accredited by the Insurance Commission is illegal.

According to Philippines News Agency, Mendoza warned unauthorized CPTL agents to cease their activities, promising operations and legal actions against them. He mentioned deploying mystery customers to catch these unauthorized sellers and any accomplices within the LTO. This crackdown follows a directive from Department of Transportation Secretary Vince Dizon after consultations with transport groups, insurance companies, and stakeholders regarding increased insurance benefits.

To aid motorists, the LTO will display posters to help identify valid CPTL insurance and report illegal sellers. Mendoza urged LTO personnel to accept all valid CPTL insurance presented by motorists renewing their vehicle registration, provided they are from companies accredited by the Insurance Commission.

These measures address reports of LTO personnel favoring specific insurance providers and refusing others. Mendoza issued a stern warning to any personnel caught refusing valid CPTL insurance, emphasizing the seriousness of such actions. He also reminded insurance agents to ensure accurate data entry into the LTO system to avoid delays and other issues in the insurance process.