CTPL InsuranceWhat is CTPL insurance and why you need it for road protection
What is CTPL Insurance?
CTPL Insurance or Compulsory third party liability insurance, also sometimes called Compulsory motor vehicle liability insurance, is the basic car insurance plan that every vehicle owner needs to get before registering a vehicle with the Land Transportation Office (LTO). It is required by the government, whether you will use the vehicle for private or commercial purposes.
CTPL insurance will cover property damage, disablement, death, and/or the medical expenses of a person that was injured during a road mishap involving your vehicle. The policy can only be claimed if the death, damage, or injury was caused by the operation of the insured vehicle.
How much is CTPL insurance?
A CTPL coverage, being a basic plan, costs only around P600.
Common misconceptions of CTPL Insurance
CTPL Insurance should not be confused with comprehensive car insurance. They are the two major types of car insurance in the philippines but they are different plans, and most people confuse them as being equals or a substitute plan for the other. While a CTPL insurance is very cheap, the coverage is not sufficient and is almost always not enough to cover damages after common road accidents. Which is why people buy comprehensive car insurance on top of their CTPL.
CTPL Insurance can also be sometimes confused with “third party liability” — which is actually a coverage benefit under the comprehensive car insurance plan. If you have a comprehensive car insurance plan with the third party liability benefit, it can pay for expenses that the CTPL cannot cover fully.
What does CTPL Insurance cover?
You need the CTPL car insurance policy not only because it is mandatory but also because it protects you — the policyholder — from any legal liability that can be filed against you in case of death and/or bodily injury of any third party in an accident. So if you don’t have enough savings to cover such extra and unexpected expense or if you want to spare yourself from financial loss due to your liability to the third party, you should never hesitate in getting this type of insurance. We’ve listed the coverage benefits of CTPL insurance below:
For injuries incurred by a third party due to a mishap that has resulted from the use of the insured vehicle, the third-party victim is entitled to hospital accommodation of ₱500 per day for 45 days maximum per accident and ₱2,000 for x-rays and other laboratory exams and fees. If there’s a need for surgery, the coverage of CTPL insurance for the surgery, anaesthesiologist, and operating room depends on whether the operation is major, medium, or minor. For drugs and medicines, the amount that will be covered by this type of insurance is up to ₱20,000.
Under a CTPL car insurance, the insurance company will cover ₱50,000 for the permanent disablement of a third-party, which includes the loss of two limbs, both hands or all fingers and both thumbs, both feet, one hand and one foot, or sight of both eyes as well as for permanent total disablement or if he/she becomes permanently bedridden. A CTPL car insurance will also cover specific amount for every part of a person's limb. In case of loss of sight of one eye, the third party will receive ₱20,000 while for loss of hearing for both ears the amount of ₱30,000 will be covered.
With a CTPL car insurance, passengers of a third-party vehicle can be compensated for death indemnity and burial expenses. A total of ₱100,000 will be given by the insurance company, which includes ₱70,000 for death indemnity and ₱30,000 for burial and funeral expenses. For PUVs, a passenger-victim can get a death benefit of ₱100,000; a third-party victim can also get ₱100,000.
How do I claim for a CTPL insurance benefit?
Getting a CTPL insurance policy is easy, but filing a claim is another story. While the standard procedures may vary from one insurance company to another, there are general claiming procedures in the Philippines that may apply to all.
When filing for CTPL car insurance claim, you will need to submit a copy of your insurance policy as well as official receipt of premium payment; police report affidavit; photographs showing the damage, the license plate, as well as the whole car with the license plate; photocopies of your driver’s license and its official receipt and vehicle registration certificate along with official receipt of vehicle registration; and notarized affidavit or third party liability insurance claim form from the insurer.
If you have a CTPL insurance, you have to immediately report any road incidents you have experienced to the authorities and the insurance company. Secure the damaged property and don’t ever admit liability or let the insurance company handle the situation. It is also wise to not offer or promise payment to third-party individuals until your insurance company told you to do so.
Compare car insurance online: Why choose GoBear Philippines?
There are a lot of car insurance companies in the country, and choosing one might be a tad difficult for you especially if you don’t have time to do a research about every CTPL insurance policy available. It’s good news that you can now compare car insurance details for free and without leaving the comforts of your home or office. By comparing various car insurance policies with GoBear, you can see side-by-side results and comparison of monthly premiums, benefits, and requirements. Visit GoBear’s FAQ page to know more about this user-friendly and helpful meta search engine.
Was this article about CTPL insurance helpful? Check out our guide on Comprehensive car insurance to see the difference between the plans.