CTPL Insurance

by Rosie Esplana

June 24, 2023

CTPL (Compulsory Third-party Liability Insurance)

Often known as compulsory motor vehicle liability insurance, it is a type of insurance mandated by law. It protects the car owner from financial obligations to anyone who is injured or killed as a result of the covered vehicle. Car and motorcycle owners must obtain this insurance before registering their vehicles with the Land Transportation Office (LTO).

Before you apply for a CTPL, you need to understand the basics of this insurance. There are a few inaccuracies here.

The CTPL does not cover the driver of the insured car, which is a popular misconception. The CTPL only protects third parties, leaving the motorist unprotected. Third parties include anyone who is not a member of the insured’s family or employee and is not a passenger.

Although a CTPL is not the same as comprehensive auto insurance, some owners believe it can be used in its stead. A comprehensive car insurance policy is more comprehensive than a CTPL because it covers vehicle loss and/or damage, excess bodily injury, property damage, no-fault indemnity, and auto passenger personal injury.

As a result, any regulated non-life insurance company can supply you with CTPL insurance, provided that they are licensed with the Insurance Commission. Several different providers have almost similar CTPL insurance prices.

When compared to the troubles you can encounter on the road, CTPL insurance is a bargain. For private automobiles, you’ll need to pay up to PhP1000.00 and for motorbikes, you’ll need to pay PhP500.00 for a one-year policy. Private automobiles can pay PhP3,000.00 for three years of coverage, while motorbikes can spend PhP1000.00.

The CTPL solely covers third-party harm or death. It does not cover the insured vehicle and driver’s damages, nor any harm to a third party properties. In a vehicle-related collision, the insurance company agrees to pay for a third party’s hospitalization, physical harm, or death under the CTPL. They do not, however, cover property loss or damage.

General Exclusions

• Any mishap that occurs outside the Philippines

• While the vehicle is being utilized in a manner that is not in compliance with the vehicle’s restrictions.

• When the car is being driven by someone who is not an authorized driver.

• Flooding, typhoons, earthquakes, and other natural disasters, as well as the threat of conflict

• Liability Assumed

• Strikes, Riots and Civil Commotion.

CTPL (compulsory third-party liability insurance) supplementary information

You’re safe from:

It shields you from any potential liabilities to a ‘third party,’ as the name implies. Damages, bodily injury, and/or death to a third party resulting from an accident involving your car are covered by the liability.

Who qualifies as a third party:

To grasp this concept, you must first comprehend the distinction between a third party and a passenger, as they cannot both exist at the same time.

According to the legislation, a third party is anyone other than the passenger who is not associated with the car owner’s residence, family, or place of job. Friends and those who aren’t related to you are therefore regarded as third parties.

A passenger, on the other hand, is anyone who either pays for the transportation or is permitted by law or the operator to ride the insured car without paying a fare. This is especially true with government and public utility vehicles.

What is the CTPL insurance coverage amount and duration:

The basic CTPL shields the vehicle owner from any potential third-party liability arising from bodily injury and/or death caused by an accident involving the covered vehicle. This coverage provides up to P100,000 in immediate financial assistance to the victim and his family. The CTPL coverage, like your automobile registration, is only valid for a year, which is why you must renew your CTPL insurance every year in order to register your vehicle.

Where can you acquire CTPL insurance?

You must use caution when purchasing CTPL insurance. In some circumstances, fixers or other intermediaries charge more when selling CTPL to automobile owners, particularly new ones. Make sure you purchase yours at a reasonable price.

It is critical to always stay safe, no matter where you are on the road. CTPL insurance for your car is more crucial than you may realize. Make certain you receive yours at the appropriate time and for the appropriate price. You may also secure your CTPL insurance online.

Importance of CTPL (compulsory third-party liability insurance)

Even if you take every measure to avoid them, accidents happen, and they usually result in lawsuits with major financial consequences. All of the scenarios we’ve gone over in this article are examples of instances in which you could be held legally accountable for other people’s injuries or damage. Liability insurance protects you from having to pay for expenses out of your own cash if something unforeseen happens.

Last Thoughts

This means that your CTPL insurance won’t keep you safe on the road? CTPL’s coverage is, unfortunately, somewhat restricted. The third person, or the one you hit, is the only one who is covered. It does not cover you, your vehicle, or third-party vehicle or property damage. And CTPL only has a PHP 100,000 budget. Any amount over that limit will be your responsibility, so you’d better pray you don’t get into a severe accident.

But what if something goes wrong with your car? What happens if another vehicle collides with your car? What if an earthquake splits your car in two? To protect yourself and your investment, you’ll need insurance. Furthermore, since you presently have a basic auto insurance policy, upgrading to a more comprehensive one would not harm you.

CTPL vs Comprehensive Insurance

Learn more about Motor Car Insurance and CTPL Insurance.

An article posted also on the website of MGS Insurance, discusses why one should get a comprehensive motor car insurance.

Please fasten your seatbelts, drive safely, and enjoy your road trip!

MGS Insurance is a licensed non-life insurance agency of top insurance companies in the Philippines. The company offers various general insurances from Comprehensive Motorcar Insurance, Home Insurance, Personal Accident Insurance, Travel Insurance, Surety Bonds, Engineering Insurance, and many more.