AUTO INDUSTRY NEWS

LTO mulling mandatory life insurance for motorists

LTO mulling mandatory life insurance for motorists image

Text: Eric Tipan / Photos: Brent Co | posted January 27, 2015 06:59

Agency studying the effects premium payment may have on Filipino drivers

The Insurance Commission has received a proposal from the Land Transportation Office (LTO) reviving an old pitch to make life insurance mandatory for all Filipino drivers.

“Well, if the car gets an insurance, the driver should also be insured,” said Emmanuel Dooc, Insurance Commissioner.

Since it is a rehash of an old proposal, Dooc asked the LTO to draft newer guidelines and consider the financial impact payments of the premium may have on Filipino drivers.

“For us who can shell out a little more, it has no problem. But, for those who cannot, that is difficult.  We do not know yet how much will be the premium, but it should not be very expensive,” added Dooc.

Under the old proposal, the driver will pay for the premium of his life insurance at the same time he renews his driver’s license.