DOTC orders probe of car insurance scam 

DOTC orders probe of car insurance scam

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DEPARTMENT of Transportation and Communications Secretary Leandro Mendoza has ordered a parallel investigation on the reported monopoly of two insurance firms on the compulsory third party liability (non-life) requirements of the Land Transportation Franchising and Regulatory Board and Land Transportation Office.

Mendoza issued the order to his Legal Affairs Office based on the complaints by taxi operators led by Atty. Bong Suntay, former Quezon City councilor turned taxi operator and current president of the Philippine National Taxi Operators Association (PNTOA).

He ordered his legal office to investigate the alleged 'monopoly' of two insurance firms -- the Philippine Accident Managers Inc. (PAMI) and Universal Transport Accident Solutions Inc. (UNITRANS) -- which are now at the helm of both the LTFRB's CTPL and Passenger Personal Accident Insurance Program (PPAIP).

Mendoza made the assurance when he met with taxi operators last week at the DOTC office in Mandaluyong City.

The alleged monopoly of the two insurance firms has forced operators to pay double than the amount they have previously been paying to avail the two non-life insurance requirements of the LTFRB.

'Isa pa talagang walang choice ang operators kundi dito lang sa dalawang insurance firms na ito,' taxi operators said.

Suntay said during an interview that the good secretary apparently was not aware of the current set-up of the insurance requirements of the LTFRB as he was surprised when the matter was raised by the taxi operators.

'Ha! meron bang ganyan?' Mendoza allegedly blurted-out upon hearing the accusation.

When asked by Mendoza, according to Suntay, Bautista washed her hands off the allegation and said the Insurance Commission which approved such setup, should be the one to make the explanation.

'Ang Insurance Commission ang itinuro niya (Bautista),' Suntay said.

Last year, the LTFRB was also accused of allegedly creating a monopoly with the PPAIP requirement when the Bautista-led board excluded the Special Alliance Management, Inc. (SAMI) from the PPAIP for violating certain rules of the agency, leaving only PAMI as sole distributor even if the law mandates that the PPAIP should be a two-group management system.

The PNTOA chief said he is very much willing to do a public debate or forum just to prove that PAMI and Unitrans indeed have a monopoly at LTFRB.

'Kahit saan nila gusto handa kaming harapin ang usaping ito,' Suntay said.

The Journal Group of Publications tried to contact Bautista to get her side in the issue but we failed to reach her for comments.