SALE OF MOTOR VEHICLES ACQUIRED BY INSURANCE COMPANIES AFTER PAYMENT OF TOTAL LOSS CLAIM
prescribing procedures to check the unscrupulous practice of
legitimizing the registration of carnapped or illegally obtained
vehicles, the following rules and regulations are hereby issued:
1. Without exception, whenever a total loss claim for loss or
damage to a motor vehicle is paid, the insurance company insuring the
vehicle should submit a report in the attached form entitled
“Description of Motor Vehicle Paid for Total Loss” to the Insurance
Commission within seven (7) days from the date of the payment of the
claim.2. If the vehicle acquired by the insurance company after
payment of a total loss is sold (as a whole or only its parts) together
with the vehicle’s registration certificate, the insurance company
should submit a report in the attached form entitled “Description of
Motor Vehicle Paid for as Total Loss and Subsequently Sold (whole unit
or parts)” to the Insurance Commission within seven (7) days from the
date of the sale.3. If the motor vehicle which is the subject of a Total Loss
Claim is no longer serviceable, considered totally wrecked or junk, the
insurance company should submit the Registration Certificate of the
vehicle to the LTO for cancellation. Within seven (7) days after the
date of cancellation of the Registration Certificate of the vehicle, the
insurance company should submit a report in the attached form entitled
“Description of Motor Vehicle Paid for as Total Loss and Subsequently
Sold (whole unit or parts)” to the Insurance Commission.4. If only some parts, particularly the motor or chassis, are
sold, the company should not transfer the Registration Certificate of
the vehicle, but instead surrender it to the LTO for cancellation.
All vehicles acquired from January 1999 up to April 2000 through
payment of Total Loss claims, should be reported to the Insurance
Commission not later than 30 May 2000 using the applicable forms as
described above. For subsequent acquisitions, reporting should be made
within the 7-day prescribed period.
All concerned should be guided accordingly.
Adopted: 02 May 2000
(SGD.) EDUARDO T. MALINIS
Insurance Commissioner