The PIRA Technical Sub-Committee on Motor Car Insurance had a Courtesy Call with the new Deputy Insurance Commissioner for Technical Matters, Mr. George S. Ongkeko, Jr., and Ms. Chona Cortez of IC Rating Division on 7 May 2019 at the IC Executive Lounge. The following present are: Messrs. Arturo B. Reyes, Chairman Motor Car Technical Sub-Committee, and Members: Messrs. Reynaldo B. Fong, Danilo B. Bariring, Cleto D. Obello, Jr., Atty. Leo-Jon P. Ramos, Christopher Y. Marquez, Ms. Vilma D. Dollentas and Jaycee Dela Cruz, together with Michael F. Rellosa (Executive Director), Rogelio J. Concepcion (General Manager) and Ms. Agnes Silaya (Accounting Manager).
The Motor Car Technical Sub-Committee introduced itself, its mandate and its members and had a short briefing with Deputy Commissioner George Ongkeko, Jr. on the following pending items with the Insurance Commission.
As requested by the Insurance Commissioner, the IC-PIRA Technical Working Group (TWG) on Risk Evaluation, Pricing and Rating (composed of IC Representatives and PIRA Technical Sub-Committee members on Motor Car) have reviewed the Motor Car Rates and discussed the following recommendations in a series of meetings in 2018 based on the Industry Motor Car Insurance Statistics covering 2011-2016 from the IC Annual Report.
1) Recommended Compulsory Motor Vehicle Liability (CMVL) Rates and
Schedule of Indemnities (PIRA Letter to IC dated 27 Dec. 2018)
PIRA submitted its position letter to IC dated 27 December 2018 with the proposal to increase the CMVL coverage for Death from P100,000 to P200,000 with adjustment of Schedule of Indemnity and with the corresponding adjustment in the premium rates.
2) Proposed Premium Rates Schedule for Motor Car (PIRA letter to IC dated 6
May 2019)
PIRA also submitted its position letter to IC dated 6 May 2019 for the proposed increase of premiums for Voluntary Third Party Liability and others.
B) New Proposal for COC Authentication Facility (LTO/Dermalog/IC/PIRA/OICP)
For info and guidance on how to go about the new proposal for COC Authentication Facility as there was a draft MOA (presented by LTO) on the Motor Car Compulsory Third Party Liability authentication facility to be signed by the Insurance Commission and the Land Transportation Office, which PIRA already sent comments to IC on this matter. This was supposed to be launched on 22 April 2019 however it was deferred and still for review of the Insurance Commission. PIRA will await for further instruction/guidance from the IC on this.
Deputy Commissioner Ongkeko, Jr. suggested to take this up in the IC-PIRA Dialogue. Based on his observation, he suggested that the two (2) organizations, PIRA and OICP should maintain the database not the Insurance Commission and IC can only just to supervise the system due to lack of manpower and capability to maintain the system.
C) Proposed Enhancement of Statistical Reporting Format on Motor Car
Insurance Lines to form part of the IC Annual Report to be required from
members.
Deputy Commissioner Ongkeko, Jr. requested the Committee to give him time to study the matters and the IC will schedule for another meeting to explore and study the proposals of the Committee.
The Motor Car Technical Sub-Committee members expressed their appreciation and support to the new Deputy Insurance Commissioner for Technical Matters, Mr. George Ongkeko, Jr.