Philippines cracks down on unauthorised third-party insurance seller

The government said it will deploy undercover “mystery customers”.

The Philippines’ Land Transportation Office (LTO) is intensifying efforts against unauthorised sellers of Compulsory Third Party Liability (CTPL) insurance. 

LTO Chief Assistant Secretary Vigor Mendoza II has instructed all personnel, particularly those in district and satellite offices, to accept CTPL policies from any insurance company accredited by the Insurance Commission (IC) when motorists renew their vehicle registration.

Mendoza issued the directive following reports that some LTO personnel reject CTPL policies not purchased from their preferred sellers. 

He also cautioned LTO personnel against denying registrations based on insurance provider preferences, emphasising that violators would face serious consequences. 

In response to concerns about unauthorised CTPL sellers, Mendoza announced that undercover "mystery customers" would be deployed to identify illegal sellers and any LTO personnel colluding with them.

Mendoza also reminded insurance agents to ensure accurate data encoding in the LTO system to avoid delays in registration. 
Notices will be posted in all LTO offices to inform vehicle owners that CTPL policies from IC-accredited providers are valid.