Do you know what CTPL is?
CTPL or Compulsory Third Party Liability Insurance is an insurance party that is being required by the LTO or Land Transportation Office to all vehicle owners prior to registering their vehicles. Regardless of the use of the vehicle, whether it is for private or public, the owners are required to purchase this insurance policy as part of the steps in registering a vehicle.
Upon availing the CTPL, the owner must present the confirmation of cover (COC) as proof that the vehicle has compulsory third party liability insurance. The confirmation of cover has basic information such as the name of the vehicle owner which also doubles as the assured, basic information about the vehicle, limit of the insurer’s liability and the schedule of indemnities payable for bodily injury. The owners of the vehicles can purchase CTPL policies from IC (Insurance Commission) accredited non-life insurance companies.
The purpose of the CTPL is to give insurance coverage to third parties involved in case of a vehicular accident. Usually, the third parties involved for PUV’s will receive a total of P100,000 and P100,000 for third-party passenger victims.
What are the misconceptions about CTPL that I have to know?
CTPL Insurance is often misunderstood. So, if you are reading this article, then now is the time to be enlightened.
Misconception: CTPL can be a substitute for comprehensive car insurance
It is already mentioned that all vehicle owners are required to get a CTPL before registering their vehicles. However, some of them may think that this type of insurance will provide the same coverage as comprehensive motor car insurance. Actually, the answer is NO. The nature of these insurances are different as well as the coverage.
Unlike CTPL, comprehensive motor car insurance offers a wider coverage as opposed to CTPL. The former offers loss and/or damage of vehicle, excess bodily injury, property damage, no-fault indemnity cover and auto passenger personal accident.
Comprehensive vehicle insurance policies also gives optional extensions like acts of nature (AON), riots and strikes among other things.
CTPL coverage includes the driver of the vehicle registered.
Just like its name, CTPL only includes third parties involved in an accident. To further clarify its definition, here is an excerpt from Section 373(c), Chapter VI of the Insurance Code of the Philippines:
THIRD PARTY shall refer to any person other than a PASSENGER as defined in the law and shall also exclude a member of the household, or a member of the family within the second degree of consanguinity or affinity of the vehicle owner, or his employee in respect to death, bodily injury, or damage to property arising out of and in the course of employment.
Another misconception: The premiums of CTPL can be bumped up
It is often believed that you can increase the coverage of your CTPL policy by bumping up the payment for your CTPL insurance. Sorry to say but this is just a moneymaking scheme intended to rip off vehicle owners. It has been mandated by the law that the maximum coverage that can be claimed under CTPL is Php 100,000 for death or injury caused by the insured.
The purpose of CTPL is to provide a certain level of protection to the public from accidents and mishaps caused by vehicles and its drivers.
So, were we able to enlighten you about what Compulsory Third Party Liability is all about? Let us know on the comments section if you have further clarifications about this.
Also, for your CTPL and non-life insurance needs, get only from the best. Get it from ABIC! What’s even better is that you can get your eCTPL from ABIC online. No lines. No Hassles. Just visit https://ctpl.alliedbankers.com.ph/ and be protected now!
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