IC CIRCULAR LETTER NO. 18-99, December 08, 1999
SALE OF MOTOR VEHICLES ACQUIRED BY INSURANCE COMPANIES AFTER PAYMENT OF TOTAL LOSS CLAIM
carnapped or other illegally obtained vehicles appear legitimate,
chassis and engine blocks are replaced by those coming from motor
vehicles, totally wrecked or otherwise, which have been sold by
insurance companies.
In view of this and in order to put a stop to this practice, the
Insurance Commission (IC), in consultation with the National Law
Enforcement Coordinating Committee (NALECC), the Land Transportation
Office, (LTO) and the Insurance and Surety Association of the
Philippines (ISAP), requires that insurance companies provide IC with
the description of the following:
1. All motor vehicles paid for as total loss by insurance companies;
2. Motor vehicles, acquired by insurance companies after
payment of a total loss, subsequently sold as is or only parts thereof,
duly supported by the corresponding copy of the deed of sale and
cancellation of the registration by the LTO, as the case may be. If only
parts of the totally wrecked vehicle have been sold, companies are
enjoined to retain the original registration papers and submit the same
to LTO for cancellation.
3. Motor vehicles which are no longer serviceable, considered
totally wrecked or junked, together with proof that the registration
has been cancelled by the LTO.
Attached are sample forms to be used for this purpose.
All concerned should be guided accordingly.
Adopted: 08 Dec. 1999
(SGD.) EDUARDO T. MALINIS
Insurance Commissioner