DPS delays insurance checks until June

Department of Public Safety Commissioner Charles Ingram yesterday announced that police officers will be giving out citations to vehicle operators who failed to secure the third party liability insurance starting June 1.

Earlier scheduled last Monday, he said the delay will give vehicle operators enough time to comply with this required liability insurance before the CNMI government will start penalizing people.

Ingram said the Mandatory Liability Auto Insurance Act has provided for DPS road blocks to ensure compliance. Drivers who will be found without the insurance card will be penalized. Driving licenses will be suspended and will be fined between $100 to $350, depending on the violation.

However, Ingram said the Bureau of Motor Vehicle will require proofs of liability insurance before cars will be registered starting next month. Registrants who will fail to show the insurance card will be refused car registration renewal.

In a press conference jointly called by DPS and the Department of Commerce, acting Director of the Division of Economic Development Lee Cabrera told the media about the assigned risk plan.

This plan will cover those vehicles and drivers that were turned down by insurance companies. These are vehicles that are over ten years old or are dilapidated that may be refused by the insurance firms. Individuals who have been cited for DUI for a number of times are also candidates for this risk plan.

Cabrera said concerned parties should submit at least three letters of declination from insurance firms to the Department of Commerce. Points will be assigned to vehicles which operators will pay on top of the fixed rate of $178 liability auto insurance.

Based on its regulations, 10 points will be assigned for DUI citation, six points for driving without license and four points for engaging in a speed contest.

He said an additional $25 for each penalty point will be added to the premium for each vehicle insured under the Assigned Risk Plan.

Regarding complaints over the fixed rate of $178, Cabrera said the insurance association in the CNMI had proposed this price and was later approved by Commerce.

He said the last time the insurance companies were allowed to ask for a rate increase was way back in 1983.