LTO urged by ARTA to remove redundancies of TPL insurance for cars

The Anti Red Tape Authority (ARTA) has urged the Land Transportation Authority (LTO) to remove the Compulsory Third-Party Liability (CPTL) insurance required with every vehicle registration in the Philippines. 

Currently, the LTO requires all vehicles that are to be registered to come with at least a CPTL insurance policy. The Anti Red Tape Authority states that the requirement is redundant, and causes additional expense to the public. 

In a statement, the ARTA Secretary, Jeremiah Belgica, TPL is already covered under a Comprehensive Automotive Insurance Policy, provided by a lot of third-party providers. He further explained that the overregulation and unnecessary requirements would reduce the financial burden on the public. He also stated that this urge is in line with ARTA’s campaign against fixers through entrapment operations. 

ARTA is currently cooperating with the Department of Transportation (DOTr), and Private Emission Testing Centers (PETCs), Motor Vehicle Emission Control Technicians (MVECTs), and the Insurance commission regarding their campaign. 

Having an insurance policy in place is good practice, and the requirement helps with alleviating financial burdens borne from car accidents and uninsured motorists. A third-party liability policy on top of a comprehensive policy will be redundant considering a comprehensive policy can be procured and will not only cover you and your vehicle but also the damage to the third party. 

Also according to the Manila Bulletin, ARTA sent a letter to the Insurance Commission and LTO about the issue, but no response has been received by the association at the time of this article’s writing. 

In short, ARTA claims that the addition of CTPL insurance on top of a comprehensive insurance policy is redundant, and it’ll streamline and lighten the burden on motorists with comprehensive policies in play.