In the Philippines, a Compulsory Third Party Liability (CTPL) insurance policy is a mandatory requirement for any motor vehicle to be registered with the Land Transportation Office (LTO). Regardless if it is for personal or commercial use, it generally comes with the policy and a Confirmation of Cover (COC)—an LTO requirement that serves as proof of third-party insurance cover acquired prior to registration in a bid to protect the general public in cases of vehicular accidents.
Once the vehicle is appropriately covered with a CTPL policy, the attached COC can then be presented to the LTO. Note that the CTPL is different from the Comprehensive Car Insurance, and that this third-party insurance cover is mandated by the LTO for all vehicle registrations and registration renewals.
What is CTPL?
CTPL Insurance stands for Compulsory Third-Party Liability Insurance. It is a mandatory requirement of the Department of Transportation (DoTr) as carried out by the Land Transportation Office (LTO) meant to protect the general public in the event of vehicular accidents. It covers bodily injury and death for third parties, incurred as a result of the vehicle owner accidentally causing bodily injury or death arising from the use of the insured motor vehicle. It pays for expenses incurred by third parties as a result of the accident, but the coverage doesn’t include the driver nor the passengers of the insured vehicle.
The CTPL only protects third parties which include anyone who is not a member of the insured’s family or employee and is not a passenger. It is basically a shield for the vehicle owner in case a potential third-party liability arises due to bodily injury and/or death caused by an accident involving the covered vehicle.
CTPL vs Comprehensive Car Insurance
CTPL insurance is a mandatory requirement of the LTO in the Philippines. It offers coverage from liability only if you get into an accident that injures or kills a third party. Because it’s the basic and is the least expensive type of coverage, it doesn’t cover your own bodily injuries or vehicle damage. It only covers third-party liability, meaning it covers injuries or death of non-passengers.
Comprehensive car insurance, on the other hand, is not required by law. However, it offers wider coverage—not just for you but for your passengers as well. It is also customizable, allowing one to add add-ons as they please, to cover for their own damage, theft, passenger personal accident, acts of God, roadside assistance, and towing. It is also a more expensive type which covers a lot more, depending on the coverage you avail of and add-ons you want to include.
What is included in the CTPL
When a CTPL policy is purchased, the insured vehicle is given an insurance policy with conditions. It also comes with an attached Confirmation of Cover (COC). The COC is the document required by the LTO upon registration to prove that the motor vehicle has third-party insurance cover. Some of the details shown in the Certificate of Cover (COC) include:
- the name of the assured
- basic details of the vehicle such as
- serial number
- chassis number
- plate number
- the insurer’s limit of liability
- schedule of benefits such as
- death benefit
- funeral expenses
- permanent disablement and
- limits for medical and hospital reimbursement
- schedule of benefits such as
A CTPL policy may be bought from any licensed insurance company. The premium rates are mandated by the Insurance Commission and any deviation from the rate, be it higher or lower, should be reported to the Insurance Commission.
What is CTPL for?
The CTPL Insurance is a mandatory requirement for LTO registration and renewal of motor vehicles. It serves multiple purposes, too, including:
- Offering protection to the general public in cases of accidents
- Offering the assurance of an insurance policy in cases of accidents
- Serving as proof that the motor vehicle has third-party insurance cover (to satisfy LTO requirements)
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 offers the following:
- For PUVs
- A total death benefit of ₱100,000 for the passenger-victim
- ₱100,000 for third-party victims.
- For a private vehicle
- ₱100,000 insurance coverage is for third-party victims only.
- Under the ‘no fault’ clause, a third-party victim is entitled to a sum of max of ₱15,000 without proving negligence.
- The maximum reimbursable fees of CTPL insurance is one hundred thousand pesos only (₱100,000) per year for third-party liability, subject to the schedule of indemnities
- Annual coverage against liability for accidental death or bodily injury of third parties arising from motor vehicle accidents resulting from the fault/negligence of the assured or any authorized driver.
Who is Covered by CTPL?
The CTPL coverage also applies if the third party are as follows:
- Friends and acquaintance passengers
- Coworker passengers
Some of the exclusions from the CTPL includes:
- 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
Who is Not Covered by the CTPL?
Aside from the regular exclusions, nobody, including the following may make a claim regardless of the amount of CTPL premium spent:
- Family and close relatives
- Employee passengers working for you
- Passengers of public transportation
- Passengers of service vehicles (delivery services, cable providers, etc.)
The CTPL coverage, like your motor vehicle registration, is only valid for a year, which is why it needs to be renewed every year. It is for this reason that the COC remains a requirement for renewal of motor vehicle registration every year as well.
The price for CTPL is a bargain, as for these coverage, you only need to pay the following amounts:
- For private automobiles, you’ll need to pay up to ₱1000.00.
- For motorbikes, you’ll need to pay the actual value of ₱500.00 for a one-year policy.
- Private automobiles can pay ₱3,000.00 for three years of coverage.
- Motorbikes can spend maximum reimbursable fees of ₱1000.00.
How and Where to Get CTPL Insurance in the Philippines
Before you even think of registering or renewing your motor vehicle registration at the LTO, you must first secure a CTPL by following the steps below:
Step 1: Prepare the CTPL insurance documentary requirements, including:
- Your vehicle’s Original Receipt and Certificate of Registration
- Your driver’s license
- Another valid government-issued ID
- Photocopies of each document listed above
Step 2: Choose any of the LTO-accredited CTPL insurance providers and buy your CTPL policy from it.
Step 3: Upon purchase, you will receive the policy along with the conditions and a Certificate of Cover (COC).
Step 4: Make duplicate copies of every document you receive and bring them to the LTO upon registration to prove that your vehicle or motorcycle has a CTPL insurance coverage.
Note: If you are buying a brand-new car, the dealership might offer free CTPL coverage for a certain period. If that’s the case, ask your agent if it’s bundled in your freebies package.
What are the licensed CTPL Insurance Companies in the Philippines?
Here’s a complete list of licensed Insurance Companies in the Philippines:
- Pioneer Insurance & Surety Corporation
- Malayan Insurance Company, Inc.
- BPI/MS Insurance Corporation
- AIG Phil. Ins. Company (Chartis Phils., Inc.)
- Philippines’ First Insurance Co., Inc.
- Cibeles Insurance Corporation
- Charter Ping An (Phil Charter Ins. Corp)
- Standard Insurance Company, Inc.
- Alliedbankers Insurance Corporation
- Starr International Insurance Phils., Branch
- Mapfre Insular Insurance Corporation
- Philam Life and Gen. Insurance Company
- Prudential Guarantee and Assurance Inc.
- Bankers Assce. (Malayan Zurich)
- First Nationwide Assurance Corporation
- BF General Insurance Company, Inc.
- Blue Cross Insurance, Inc.
- UCPB General Insurance Company, Inc.
- Perla Companie de Seguros, Inc.
- QBE Seabord Insurance Phils, Inc.
- Stronghold Insurance Company, Inc.
- Commonwealth Insurance Company
- Pioneer Intercontinental Inc. Company
- Asia Insurance Corp.
- Insurance Company of North America
- Pioneer Asia Insurance Corporation
- Plaridel Surety & Insurance Company
- Reliance Surety & Insurance Company
- United Insurance Company, Inc.
- Sterling Insurance Company
- Corporate Guarantee and Insurance Company, Inc.
- People’s General Insurance Corporation
- Federal Phoenix Assurance Company, Inc.
- MAA General Assurance Philippines, Inc.
- Petrogen Insurance Corporation
- Empire Insurance Company
- Alpha Insurance and Surety Company, Inc.
- Liberty Insurance Corporation
- Centenial Guarantee Assurance Corporation
- PGA Sompo Japan Insurance, Inc.
- Manila Surety & Fidelity Company Inc.
- Mercantile Insurance Company, Inc.
- Philippine British Assurance Company, Inc.
- Pacific Union Insurance Company
- Monarch Insurance Company, Inc.
- Paramount Life and Gen. Ins. Corp.
- Investors Assurance Corporation
- Western Guaranty Corporation
- Visayan Surety & Insurance Corporation
- Fortune General Insurance Corporation
- Intra-Strata Assurance Corporation
- New India Assurance Company, Ltd.
- Country Bankers Insurance Corporation
- AFP General Insurance Corporation
- Great Domestic Insurance Company of the Philippines, Inc.
- First Integrated Bonding & Insurance Co., Inc.
- Premier Insurance and Surety Corporation
- Republic Surety and Insurance Company, Inc.
- Milestone Guaranty and Assurance Corporation
- Security Pacific Assurance Corporation
- Meridian Assurance Corporation
- R&B Insurance Corporation
- Asia United Insurance, Inc.
- Far Eastern Surety & Insurance Company, Inc.
- Solid Guaranty Inc.
- Travellers Insurance & Surety Corporation
- Metropolitan Insurance Company
- Northwest Insurance & Surety Company, Inc.
- FLT Prime Insurance Corporation
- Philippine Fire and Marine Insurance Corp.
- PNB General Insurers Company, Inc.
- CLIMBS Life and General Inc.
Getting a CTPL Insurance for your motor vehicle may be required by the LTO, but it serves to protect the third parties from whatever deficiencies you may have as a driver. As such, it is important to ensure that your CTPL is taken from legitimate providers instead of the fly by night companies offering Compulsory Third Party Liability (CTPL) in LTO. Unsuspicious motorists may simply just buy a CTPL from a person or company to speed up the car registration process without ensuring its legal existence, resulting in more problems when you accidentally hit a person.