After scoring the Land Transportation Office (LTO) for their 'new vehicle license plate' policy, Congressman Winston Castelo of Quezon City is after another policy by the agency.

Castelo, who is also the Chairman of the Metro Manila Development Committee, has received numerous complaints regarding the LTO's Third-party Liability (TPL) insurance policy and is seeking to review this mandatory vehicle registration requirement.

According to the Congressman, his office has learned that there have been cases where policies were simply being photocopied and sold to unwitting motorists with identical serial numbers leading him to the conclusion that this is happening with the help of corrupt LTO officials.

"It is a milking cow of corrupt officials of the Land Transportation Office (LTO) and incompetent and undercapitalized insurance companies. It is a P15-billion-a-year business that gives little benefits to vehicle owners," Castelo said.

Aside from the alleged bogus policy sold, the real problem arises when motorist try to claim from the insurance company.

TPL insurance scam

"In the end, what vehicle owners have are what we could consider as bogus insurance contracts. My office has received numerous complaints from motorists, who could hardly claim the benefits under the stipulated insurance contracts," added Castelo.

Castelo also lashed out at the extremely difficult claiming process that includes a long list of documents to procure forcing motorists to simply pay out-of-pocket to avoid the hassle of dealing with the insurance company.

"The policy is not effective because there are around 12 to 15 requirements just for claiming benefits. Your expenses to comply is greater than the insurance payment," he said.

More than 16 million motor vehicles register annually, which means insurance firms earn at least Php 15 billion premium payments alone, according to Castelo.