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.
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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 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.
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:
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.
The CTPL Insurance is a mandatory requirement for LTO registration and renewal of motor vehicles. It serves multiple purposes, too, including:
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:
The CTPL coverage also applies if the third party are as follows:
Some of the exclusions from the CTPL includes:
Aside from the regular exclusions, nobody, including the following may make a claim regardless of the amount of CTPL premium spent:
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:
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:
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.
Here’s a complete list of licensed Insurance Companies in the Philippines:
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.
