Several complaints have risen concerning the compulsory third-party liability (CTPL) insurance which is mandatory with the renewal of registration for motor vehicles—cars and motorcycles alike. Apparently, reports of Private Motor Vehicle Inspection Center (PMVIC) employees selling or making referrals to insurance companies have begun to spread, causing confusion among motorists and the prices of renewal of registration to skyrocket.
As it would turn out, PMVIC employees who refer motorists to insurance companies have been making a sizable commission from their under-the-table business dealings. As expected, this results in the end-users, in this case, vehicle owners, to pay a lot more than they have to. To address the growing concern of corruption among PMVIC employees, the Vehicle Inspection Center Operators Association of the Philippines (VICOAP) has released a statement regarding the matter. The organization states that although motor vehicle inspection and insurance are both required in order to obtain vehicle registration, the sale of insurance is beyond the scope of the PMVIC’s services, and as such, should not be sold by PMVIC employees.
Instead, CTPL insurance coverage should be obtained from authorized insurance companies, and represented by bonafide employees of said insurance companies. Not only does this give a clear distinction between the duties of PMVICs and insurance companies, it also ensures that motorists pay for and are given exactly what is due to them, and are not forced to overpay for insurance due to unauthorized transactions.
At the end of the day, it is incumbent upon us motorists to ensure that we obtain our motor vehicle insurance from a reputable, certified company, in order to avoid overpaying, or worse, being unable to file a claim should the unfortunate event ever present itself. At present, a total of 49 PMVICs are operational, with these inspection centers conducting roadworthiness tests on all sorts of vehicles. Each of these PMVICs have their own Geographical Area of Responsibility (GAOR), a predetermined geographical scope concerning the responsibility of each PMVIC.