Compulsory Third Party Liability Insurance

CTPL stands for Compulsory Third Party Liability Insurance, a mandatory requirement of the Land Transportation Office (LTO) when renewing your vehicle certificate of registration.

The CTPL does not cover the driver of the insured car, which is a popular misconception. The CTPL only protects third parties, leaving the motor vehicle owners 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 place. A comprehensive car insurance policy is more comprehensive than a Third Party Liability CTPL because it covers vehicle loss and/or damage, excess bodily injury, property damage, no-fault death indemnity, and auto passenger personal injury.

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 the actual value of PhP500.00 for a one-year policy. Private automobiles can pay PhP3,000.00 for three years of coverage, while motorbikes can spend maximum reimbursable fees of PhP1000.00.

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

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 medical expenses 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 private cars.

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.