You were super friendly.
Thomas D.
Sebring, FL
By Chino S. Leyco, The Manila Times, Philippines
Aug. 18--MACTAN, Cebu: Winston Garcia, Government Service Insurance System (GSIS) president and general manager, said the Finance secretary is acting as if he was the "spokesperson" of private car insurers over the issue of the compulsory third-party liability (CTPL) insurance.
Finance Secretary Margarito Teves had earlier claimed that officials of GSIS, the Philippine Insurers and Reinsurers Association (PIRA), the Insurance Commission and Land Transportation Office attended a meeting where the parties supposedly expressed interest in coming up with a compromise agreement on the compulsory third-party liability issue.
But Garcia denied that meeting took place and that a deal has been struck. He also accused Teves of protecting the cartel of car insurers and of favoring their interest over that of the consumers, who deserve to pay lower premiums.
"I can't understand why he [Teves] is so interested in this. He should uphold first the problem in collecting taxes, and not protecting the cartel," Garcia told reporters covering Finance.
The reporters, which included The Manila Times, were invited on an all-expense paid trip over the weekend to Cebu by GSIS.
In a separate interview earlier, Teves told reporters that he already talked with executives of GSIS and of the insurers group, and that he had suggested that they settle the issue through a compromise deal. Teves claimed that Garcia, the association of car insurers, the Insurance Commission and Land Transportation Office were open to his offer.
But Garcia insisted: "There's no meeting. There was no compromise."
"He [Teves] didn't even consult with us. There was no attempt to conduct a meeting with us," he said.
Honorio Ramajo, chairman of the Philippine Insurers and Reinsurers Association, had said his group met with Teves on July 31 in the Secretary's office in Makati, and Teves asked if there was a way GSIS could be allowed to offer insurance to private buyers.
But Ramajo, likewise, said a compromise deal between the opposing parties is definitely not in the offing.
"There is no way we can agree to a compromise with the GSIS," Ramajo said in a statement.
Given the meeting between Teves and the car insurer last month, Garcia is questioning the Finance secretary's motives in talking with the insurance companies and in announcing that GSIS is open to a compromise agreement.
"What's the motivation of Secretary Teves to be perceived as a spokesperson of PIRA? I challenge him," Garcia said.
In a text message to The Times on Sunday, Teves said, "We understand that the CTPL case is still pending so that it may be prudent for us to wait [for] the final resolution of the case. However, whatever the final legal outcome, what we want to see is a CTPL solution that protects the public by eliminating fake CTPL policies, provides reliable customer service in claims management and payment, and ensures prompt collection of taxes. We hope that the solution will be arrived at after transparent and open consultations with all stakeholders."
The case arose from the Department of Transportation and Communication Order 2007-28, which mandated that GSIS be the sole provider of compulsory third-party liability insurance to vehicle owners.
But on July 25, a regional trial court stopped GSIS from taking over the compulsory third-party liability insurance for motor vehicles. Judge Carlos Valenzuela of Mandaluyong City issued a 20-day temporary restraining order prohibiting the state pension fund, the Department of Transportation and Communications, and other parties from implementing a takeover.
The compulsory third-party liability is an insurance policy that shoulders any possible damage resulting from a person's use of his or her car.
Despite the restraining order, Garcia said the GSIS has started its integrated car insurance system at the Land Transportation Office on August 1, arguing that the court order covers the Department of Transportation and Communications but not the memorandum of agreement that the state pension fund has with the Land Transportation Office.
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