How to claim CTPL Insurance? Here’s what you need to know

A car owner in the Philippines needs a few things without compromise, including a  driver’s license, LTO OR/CR, and  car insurance. While the first two ensure the driver's roadworthiness, the latter offers the driver financial protection against uncertainties like accidents, theft, natural disasters, etc.

If you choose not to have insurance (which is not at all suggested), a lot of things can go wrong financially, legally, and personally. The list of consequences includes-

• Legal penalties
• Financial burden (property damage, medical expenses, repair cost)
• No protection against natural disasters, theft & vandalism, and damaged vehicles
• Stress & inconvenience
• Loss of livelihood & business

Also Read: Stay road-ready: Why you must have your OR/CR in the Philippines

We hope that you are now fully convinced about getting car insurance. But when you inquire about car insurance in the Philippines, you’ll be greeted by two terms: Compulsory Third-Party Liability (CTPL) insurance and Comprehensive Insurance.

Also Read: Compulsory Third-Party Liability Insurance (CTPL) vs. Comprehensive Insurance

While CTPL is a must for every motor vehicle owner in the country, no questions asked, the latter is a choice with several benefits. Today, we’ll discuss the former in detail and shed light on its different aspects, including how to claim CTPL insurance.

But first, let’s brush up our knowledge on the subject -

Understanding CTPL insurance

What is CTPL? Compulsory Third-Party Liability Insurance, commonly known as CTPL, is a mandatory requirement by the LTO and is meant to protect the general public in the event of an accident. It covers bodily injuries and death of third parties caused by the insured motor vehicle.

In short, it pays for the medical expenses incurred by third parties as a result of an accident involving the insured vehicle. Not that the coverage doesn’t extend beyond this, meaning it doesn’t cover the driver or passengers of the insured vehicle. It serves the following purposes -

• Serves as proof that the vehicle has third-party insurance cover.
• Offers protection to the general public (third party) in case of an accident.
• Acts as an assurance that an insurance policy is in place.

CTPL insurance vs. Comprehensive insurance

The table below gives a detailed comparison between CTLP and comprehensive insurance -

CTLP Insurance	Comprehensive Insurance
Mandatory requirement by LTO.	No required by law.
Offers coverage if you get into an accident that injures or kills a third party.	Offers wide coverage (insured car, its owner, and passengers) and
It doesn’t cover insured vehicle damage and injuries to the car owner.	It is customizable thanks to add-ons (theft, own damage, acts of God, etc.).
Least expensive car insurance.	More expensive (depending on the coverage availed and add-ons included).

CTLP insurance - Details included in the policy

Whenever a vehicle acquires CTPL insurance, the owner receives an insurance policy and a Confirmation of Cover (COC).

Did you know? COC, i.e., the Confirmation of Cover, is required by the LTO for the registration of a motor vehicle. It serves as proof that the concerned vehicle has third-party insurance coverage.

Details found on COC -

Personal details	Name of the insured
Vehicle details	Serial number Chassis number Plate number Color
Insurance details	Limit of liability along with schedule of benefits like death, funeral expenses, permanent disablement, and dismemberment. Limit for medical and hospital reimbursement.

Did you know? Premium rates for CTLP insurance are mandated by the Insurance Commission (IC), and any deviation (higher or lower) must be reported to the IC itself.

CTLP insurance - Financial coverage offered

Let us now learn about the coverage offered to third parties under CTPL insurance. Yes, the coverage varies as per the vehicle involved and the circumstances. The table below gives an insight into the coverage amount offered by CTPL -

For Public Utility Vehicles (PUVs)	The death benefit of PHP 100,000 for the passenger-victim Coverage of PHP 100,000 for the third-party victim
For private vehicle	Coverage of PHP 100,000 for the third-party victim
Under ‘no fault cases’	Third-party victim is entitled to a maximum coverage of PHP 15,000 without proving negligence
Cases where the insured is at fault/negligence for accidental death or bodily injury of a third party	Annual coverage against liability
The maximum reimbursable fee of CTPL	PHP 100,000 annually (subject to the schedule of indemnities)

CTLP insurance - Parties covered and not covered

As mentioned, CTPL offers protection to the general public in a scenario of an accident involving the insured vehicle. Therefore, its scope is quite wide and includes anyone who is not a family member or employee of the insured and a passenger.

If the third party involved in the accident is a friend, acquaintance, or co-worker passenger, will they be covered? The answer is YES.

In addition to the regular exclusions (insured vehicle driver and passengers), here is a list of parties who can’t claim under any circumstances. The list includes -

• Insured family and close relatives
• Insured employee passengers
• Passengers of public transportation
• Passengers of service vehicles like delivery services and cable providers

CTPL Insurance - Price and Validity

CTPL insurance is mandatory, and therefore, its price is quite low. Frankly speaking, for all the coverage offered, it is a steal of a deal. Let us check out how much money you are required to pay to get a CTPL insurance policy -

Private automobiles	PHP 1000  PHP 3000 for 3-year coverage
Motorbikes	PHP 500 for a year’s policy Max reimbursable fees: PHP 1000

What about CTPL validity? The CTPL insurance policy is valid for only one year, and therefore, it needs to be renewed every year.

CTPL insurance - Guide to secure policy

Step 1: Get the requirements ready (LTO OR/CR, driver’s license, valid government-issued ID).

Step 2: Head to an LTO-accredited CTPL insurance provider & buy the policy.

Step 3: Keep safe the CTPL policy and COC handed over to you by the insurance provider.

Step 4: Make duplicate copies of the CTPL insurance policy and COC.

Wanna know about the LTO-accredited CTPL insurance providers in the Philippines, check out the list here.

CTLP insurance - Filling a claim

Here’s what needs to be done to file a claim under a CTPL insurance policy -

Step 1: Read the policy

The first and foremost step is to read the fine print. Though CTPL policy is a generic policy, a policyholder must go through every point. Pay special attention to two subjects - limitations on the use of motor vehicles and the extent of liability to the public.

Step 2: Keep calm and reach for first-aid

In case of an accident, do not panic and do two things for sure - first, do the necessary first aid, and second, call the authorities for medical assistance and accident investigation.

Step 3: Be truthful; go for an amicable settlement

Always be honest about the cause of the accident to yourself and the other party. It is also recommended to opt for an amicable settlement (mutually agreed-upon agreement), as it will save both parties time, expense, and inconvenience - thanks to the tedious insurance-claim process and possible court litigation.

In most cases, the insurance company suggests the insurer never admit any liability and offer any settlement. Why? Well, that’s because the insurance company wants to recover from the other party if they are at fault.

Step 4: Call the police

If you can’t agree upon a mutual agreement, then we’d suggest you call the police asap. On arrival, they will investigate the accident site, collect evidence, and document everything. Here’s a list of duties the authorities will be responsible for -

• Personal details of the drivers involved
• Personal details of the witnesses and victims
• Interview of the parties
• Take measurements and photographs of the incident site
• Document the extent of damage to the car and property

Step 5: Exchange information

While the police are doing their job, it’s important to collect some information on your end. Confused? We are suggesting that you exchange essential information with the other party involved in the accident. Here’s a list of details you need to exchange with the other party and witnesses -

• Name
• Address
• Contact number
• Details of the CTPL policy
• Name of the registered owner of the other vehicle

Step 6: Take pictures of the car and accident scene

It is very important to take photographs of the accident scene as it serves several purposes, including -

• Acts as a claim for an insurance claim
• Acts as evidence in case of a legal dispute
• Help determine liability by clearly determining the party at fault
• Help preserve memories and crucial details of the incident

Also Read: All you need to know about taking photos after a car accident in the Philippines.

Step 7: Get medical certification

It is essential to secure a medical certificate that will show the extent of the injury and suggest treatment and medication.

Step 8: Find out about the claim procedure

If you are filing a claim with your insurance provider, first check the standard procedure required to be followed, including - the documents required, specific procedures, forms, etc.

Step 9: Prepare an affidavit & complete the claim form

To file your claim with the insurance provider, you first need to prepare an affidavit that’ll narrate the incident in detail, along with the extent of damage, injury, and expenses concerning medical treatment and others. Next, you’ll be required to complete the claim form provided by the insurance provider.

Bottom line

Compulsory Third Party Liability (CTPL) insurance may be a mandatory requirement by law, but its main job is to protect the third party from the deficiencies you may have as a driver. However, make sure to get CTPL insurance from a legitimate provider and not from some unreliable sources in LTO. They might speed up the process, but result in problems in case of an accident.

Also Read: Car Insurance Endorsements: What they are & why they matter