On May 16, 2002, the Insurance & Surety Association of the Philippines (ISAP) awarded to SQL*Wizard, Inc. the design, development, operation and maintenance of the ISAP COC Authentication System which aims to minimize, if not eliminate, the proliferation of fake Compulsory Third-Party Liability (CTPL) insurance policies.
Each motor vehicle owner is required to secure a CTPL insurance prior to having his/her vehicle registered with the LTO. Most vehicle owners buy this insurance right in the LTO branches where they register. Persons who sell insurance right at the LTO branches are usually “fixers” and are, therefore, not authorized to sell insurance. To compound the problem, most of the policies that they sell are fake. Either the policy is issued by an unlicensed company or if the company name is legitimate, the policy is fake. Sellers of fake insurance policies deprive the licensed insurance companies of legitimate business, deprive the government of taxes and deprive the consumer of protection in case of claims.
This has been a perennial problem for both the LTO and the insurance industry. Several steps have been taken in the past to minimize, if not eliminate this problem. Recently, the Insurance Commission, the LTO and ISAP reached an agreement where ISAP was to set up a facility to authenticate Certificates of Cover (COC’s) for CTPL insurance. On July 1, the ISAP COC Authentication System (COCAS) became available for use by the ISAP members. ISAP has also authorized D’Tech Management, Inc. to do the verification of the COC in the different LTO offices. The verification process as carried out by D’Tech was implemented in the NCR beginning July 24, 2002.
When an insurance company issues a COC, it has to be registered in COCAS and given a unique authentication number. The vehicle owner then submits the COC in the D’Tech booth inside the LTO office. D’Tech personnel will verify the authenticity of the COC by checking the COCAS database. Once the COC has been verified, the vehicle owner can then proceed with the registration. If the COC did not pass the verification, the vehicle owner will not be able to proceed with the vehicle registration and has to check with the insurance company from where the COC was purchased. The vehicle owner can also check the authenticity of his/her COC through SMS. By simply typing ISAP VER [COC #] [vehicle plate #] and sending the message to Globe 2333 or Smart 288, the vehicle owner will know whether the COC is authentic or not.
Through ISAP COCAS, the public is protected from buying fake insurance policies and the government is assured of additional revenues in the form of premium taxes.