I Love Pinoys

“Not only Fejodap (Federation of Jeepney Operators and Drivers Association of the Philippines) will join the strike,” the group’s leader, Zenaida Maranan, told ABS-CBN.

Maranan admitted there are factions within the transport sector but these have a united stand against the insurance scheme that is being planned for integration under the Government Service Insurance System (GSIS).

“This is about our jobs and the operators and pedestrians’ interests,” she said.

Maranan said several transport groups will attend the meeting called by Transportation and Communications Secrtary Leandro Mendoza with GSIS officials.

She said transport groups will hold the strike if the government insists on taking over the management of the transport insurance system.

On-track

Despite the threat, GSIS spokeswoman Estrella Elamparo clarified that the memorandum of agreement appointing GSIS as the processing agency for the CTPL insurance has been “signed and sealed.”

“There are no legal impediments [for the scheme’s implementation],” Elamparo said.

She said the meeting was called as a consideration for the issues being raised by transport groups.

The GSIS spokeswoman said transport groups should give the scheme a few months before “speculating” against the scheme.

“If after a few months the GSIS fails to satisfy them, they can act against the scheme, but for now, please let’s give GSIS a chance,” she said.

One of the reasons for the transport groups’ reservations on the scheme is the perception that Garcia’s management have been mismanaging the state workers’ funds, which Elamparo said is just a misconception.

Maranan said the government can take over the CTPL insurance issuance for private vehicle owners, but should leave the public utility vehicles’ insurance to trusted private companies.

No monopoly

GSIS president Winston Garcia on Wednesday assured that the state workers’ fund will not monopolize the P3.5 billion CTPL insurance business.

Garcia said GSIS will only be taking up 20 percent of all CTPL policies.

“The GSIS will also accredit reinsurance companies to which it will farm out the provision of the CTPLs. The GSIS will only take up 20 percent of all CTPL policies it will garner and farm out the provision of the other 80 percent to accredited insurance and reinsurance firms at much lower prices than the old CTPL system,” Garcia said.

He said venerable and respected insurance companies had already expressed support for the program, and more than 50 companies had even expressed their intention to seek accreditation with GSIS.

Garcia pointed out that representatives of the insurance companies had showed up in their press briefing Wednesday to signify their support for the DOTC and GSIS program.

The insurance companies joining the program paid for a full-page advertisement that came out in Wednesday’s issue of The Philippine STAR to express their support to GSIS and DOTC.

The companies that signed the manifesto of support were AFP General Insurance Corp., Malayan Insurance Co. Inc., Bank of the Philippine Island Mitsui, Tokio Marine Malayan Ins. Co., Sumitomo Insurance Corp., Malayan Zurich Ins. Co. Inc., Mapfre Insular Insurance Corp., Meridian Insurance Corp., Pioneer Insurance and Surety Corp., Allied Bankers Insurance Corp., Pioneer Intercontinental Ins. Co. Inc., Equitable Insurance Corp., Eastern Assurance and Surety Corp., and Stronghold Insurance Co.

Garcia said there was no truth to allegations made by some members of the Philippine Insurers and Reinsurers Association (PIRA) that the government’s move to integrate the CTPL insurance issuance will result to a monopoly by GSIS of the business and that it will lead to the loss of some 60,000 jobs for insurance industry workers.