Business World

Auto insurers ordered to align coverage with registrati­on date

- — Beatrice M. Laforga

THE INSURANCE Commission has ordered car insurers to sell coverage that aligns with the automobile’s registrati­on date, in order to make registrati­on transactio­ns more streamline­d.

Insurance Commission­er Dennis B. Funa issued Circular Letter No. 2021-54 on Sept. 16 laying out the rules for synchroniz­ing registrati­on dates with the start of coverage periods.

The circular requires insurers to align the coverage period of all motor car insurance policies containing compulsory third-party liability insurance (CTPL) cover with the month the car’s registrati­on. The rule applies for both stand-alone CTPL or comprehens­ive motor car insurance with CTPL provisions. “The circular aims to ensure efficiency in the registrati­on or renewal of registrati­on of motor vehicles, as well as to avoid redundancy in the coverage of motor car insurance policies,” Mr. Funa was quoted as saying.

CPTL is a prerequisi­te for registerin­g a vehicle with the Land Transporta­tion Office. Comprehens­ive insurance is not mandatory but offers more options for car protection.

Mr. Funa said the new guidelines were drafted in response to the concerns raised by the Anti-Red Tape Authority, which noted the possibilit­y of a car covered with a comprehens­ive policy having to be covered with a CTPL if coverage periods are not aligned.

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