TWO local insurance companies do not oppose Senate Bill 23-31, which proposes to release civil or criminal liability upon transfer of vehicle ownership, but they believe it can be improved.
Authored by Sen. Frank Q. Cruz, S.B. 23-31 proposes to require the Bureau of Motor Vehicles to issue a notice of transfer and release of liability upon transfer of vehicle from original owner to new owner, declaring that the former owner is no longer responsible for parking/traffic violations, or civil or criminal liability associated with the vehicle.
Department of Public Safety Commissioner Anthony I. Macaranas supports the bill, saying it would provide added protection from liabilities for the seller and all parties involved such as the insurance companies.
However, Marianas Insurance Company Ltd. and Pacific Basin Insurance Company have concerns about S.B. 23-31,
In a letter to Sen. Karl King-Nabors, who chairs the Senate Judiciary, Government and Law Committee, Marianas Insurance General Manager Lilian S. Cabrera said the bill “appears to contradict” the law that requires vehicle liability insurance.
She said to strengthen the rules in mandating owners and transferees to comply with “immediate” registration and related requirements, “there should be a time limit wherein compliance must be met and financial repercussions imposed, if not.”
Cabrera said, “We have seen countless times wherein clients will have in their possession two or three copies of a vehicle bill of sale for the same vehicle from different owners, but no official vehicle registrations were obtained between the sale to [show] legal transfer of ownership or title.”
The most common excuses for not immediately registering a purchased vehicle are:
1) The vehicle registration from the previous owner is still valid.
2) The insurance policy for the purchased vehicle as stated on the registration is still valid.
3) Takeover bank payments for previous owner who has left the island. The bank, unaware of the vehicle’s sale and payment arrangements, releases the title to the previous owner.
4) The vehicle was in need of repairs and was in an auto shop for an extended period.
Cabrera said “the intent of the proposed legislation is good but could be made better.” She said without public education, and more importantly, proper enforcement, “the exercise is futile.”
Pacific Basin Insurance Company President Joseph C. Reyes, for his part, noted a provision in the bill that mentions a bicycle in reference to the registration of vehicles.
“I am not sure why a bicycle would be a registered vehicle,” he said.
Reyes also recommended adding a provision that would require the Bureau of Motor Vehicles to develop a databank for storing motor vehicle accident records.
He said insurance carriers must report any and all accidents, which should be fed into the system to establish an accident history of the vehicle.
