Understanding Personal Accident Car Insurance Coverage in the Philippines

If you own a car in the Philippines, you must be aware of the importance of CTPL, i.e., Compulsory Third Party Liability insurance, as it is a must at the time of car registration. For prospective car buyers, we’d like to tell you that driving an unregistered car in the Philippines is illegal, and LTO will only let you do so when you meet the minimum requirement, i.e., getting third-party liability insurance coverage.

Also Read: Compulsory Third Party Liability (CTPL) 101: Everything a car buyer needs to know

However, a majority of car owners in the Philippines top up CTLP insurance with comprehensive insurance for added coverage for the vehicle and passengers. Remember, there is nothing wrong with financially protecting yourself, your passengers, and your beloved vehicle in case of an accident, which can be done by getting your hands on the various coverage options offered by a comprehensive insurance package. Here are a few car insurance products that a car owner should consider over CTPL -

• Property Damage Protection - In case of an accident wherein you are responsible, this coverage offers the following coverage - other people’s car repair, property damage, and other non-human damages. It also covers the legal fees if a case is filed against you by the other party.
• Bodily Injury Coverage - If you hit another person while driving, this coverage will take care of the hospital and medical fees of the injured. In addition, it would compensate for the injured party’s lost wages and emotional distress damages. The legal fee is also taken care of by this coverage.
• Comprehensive Coverage — When the situation and damage/loss are beyond your control, comprehensive coverage comes into play. It financially protects you against theft, malicious damage, fire, riots, vandalism, and other non-natural events that can damage the vehicle.
• Acts of God/Nature coverage - This coverage financially protects you against damages caused to your car by natural disasters like floods, typhoons, earthquakes, etc. Since our country is prone to such natural calamities, this coverage is most recommended and popular.
• Personal accident coverage - This coverage is specially designed for the passengers in your car and yourself. It takes care of the hospitalization and medical fees that go into the treatment.

Other coverage to consider -

• Roadside assistance coverage
• Collision insurance
• Loss of Use coverage
• Towing coverage

Also Read: Understanding Pay-How-You-Drive Insurance in the Philippines

From the above list, we have elaborately covered the Acts of God coverage, which you can check out. Today, we’ll be shedding light on Personal Accident car insurance coverage, discussing its benefits, inclusions, cost, and much more.

Note, like the Acts of God/Nature coverage, Personal Accident coverage is also an important insurance option to consider. If involved in a mishap while traveling, you and your passenger might get injured, and at that time, this coverage will be of great help, relieving you of the medical financial strain, which we don’t need to tell quite so much.

So, without any delay, let us begin exploring Personal Accident coverage in the Philippines.

Understanding Personal Accident coverage in car insurance

What is Personal Accident coverage? Personal Accident coverage is a type of car insurance that the insured can include in his/her policy. It provides financial assistance in case of injury, disability, and death caused by an accident involving the insured vehicle.

 

With Personal Accident coverage by your side, you, as well as the passengers in your cars (in most cases), are protected against financial strain like hospital and medical bills along with other associated expenses like ambulance and funeral chargers.

Also Read: Passenger safety: What does your car insurance cover in an accident?

Personal Accident coverage - Basic terminology

Before moving forward, it is essential to familiarise yourself with the confusing and intimidating jargon associated with Personal Accident coverage or car insurance coverage in general. This will help you understand your options better and help you find the best-suited insurance package as per your needs.

Insured	The person who is at the receiving end of the insurance coverage.
Policyholder	The person who has purchased and is paying for the insurance. He/she might or may not be the insured.
Beneficiary	The person will receive the benefits of the policy if the insured person suffers an accident.
Insurance Premium	Amount paid by the policyholder for the insurance plan. This amount is based on the coverage.
Claim	It is the request made by the policyholder or beneficiary to get the benefits of the policy.
Coverage	It refers to the scope of protection offered by the policy to the insured.
Deductible	It is the amount of money paid by the policyholder from the pocket before the policy claim is passed and covers the expenses.

Also Read: Important insurance terms a car buyer should know

Personal Accident coverage - What’s the need?

Road accidents, sadly, are a common occurrence worldwide, and the Philippines is no exception to the tragedy. A recent report by the Metropolitan Manila Development Authority (MMDA) revealed the following statistics about road accidents in the country -

• In 2024, four-wheelers were part of most car accidents in Metro Manila.
• From January to November 2024 alone, there were 62,723 road crashes with 332 fatalities.
• 54% of vehicles involved in road crashes were four-wheelers, followed by motorcycles (22.03%) and trucks (7.41%).

These statistics paint a clear picture of the dangers out there, making Personal Accident coverage a necessity for all car owners. This coverage ensures the safety of the driver and passenger in such a tragic event.

Key reasons to have Personal Accident coverage -

• Financial protection - Hospital and medical bills can be overwhelming for a road accident victim. With Personal Accident coverage, the insurance company will take care of such expenses.
• Peace of mind - When you are on the hospital bed, all injured and in pain, knowing that you are financially secure gives you an immense sense of security. The same is true when you are perfectly fine and know that if something happens to your passenger, you have financial assistance.
• Compensation - Personal Accident coverage offers compensation to the insured in the event of permanent disability and death caused by an accident.

Personal Accident coverage - Inclusions

Like most car insurance policies, wherein the coverage depends on the insurer and the policy type, the same is the case with personal accident coverage.

Some of the most common types of inclusions are -

• Accidental death benefit - Compensation is granted if the insured driver or the passenger dies in a car accident.
• Medical reimbursement - Reimbursement of medical expenses incurred during the treatment of injuries sustained in a car accident.
• Disability benefit - Financial compensation is given in case the insured sustains permanent or partial disability in a car accident.
• Funeral and burial assistance - Some insurance companies also include post-death ritual compensation in Personal Accident coverage.

Personal Accident coverage - Who is covered?

Your car insurance policy and its inclusions define the scope of coverage and apply the same principles as personal car insurance. However, a typically

Personal Accident coverage in car insurance covers -

• The driver - This can be the registered car owner or designated driver of the insured car.
• Passenger - Individuals within the insured vehicle at the time of the accident.

Personal Accident coverage - Factors to consider while choosing

Here are a few generic tips to remember when choosing personal accident coverage for your car insurance policy in the Philippines -

• Sum insured - Always choose coverage that offers financial protection that is good enough to cover hospital and medical expenses.
• Insurer’s reputation - Always go for an insurance provider with superb goodwill in the market and with easy and quick claim processing.
• Accident death & disability coverage - Make sure the policy offers substantial compensation in case of accidental death and covers both permanent & partial disability.
• The premium charged - When deciding on an insurance provider, compare insurers based on premium cost. Select the one that best suits your budget.

Also Read: How to select a good car insurance provider in the Philippines: Key tips & considerations

Personal Accident Coverage - How to file a claim?

In the event of a road accident, follow the steps below to file a personal accident coverage claim in the Philippines.

Step 1. Notify the insurance provider about the accident asap.

Step 2. Prepare the required documents; some common requirements include a duly accomplished claim form, police report, medical report, and other supporting documents required by the insurer.

Step 3. Provide all necessary paperwork to the insurance provider.

Step 4. Wait for the insurer to evaluate your claim, once all the requirements are met, benefits will be disbursed.

Also Read: Filing car insurance claims in the Philippines: Coverage to consider in case of an accident

Bottom line

For a Filipino car owner, Personal Accident coverage is a valuable safety net, as it offers them financial assistance against injuries, disability, or death caused during a car accident. Though it is not mandatory by law like CTPL insurance, it is highly recommended, especially knowing our nation's high road accident rate. However, before purchasing Personal Accident coverage, it is essential to do the following - do proper research, compare different insurers based on terms offered, and pick the coverage that suits your needs. Remember, with the right coverage, you’ll get to enjoy complete peace of mind while driving.

Also Read: Top car insurance picks in the Philippines; know which one is right for you