TPL (also known as CTPL insurance) is a type of basic car insurance that every car owner in the Philippines need obtain prior to registering their vehicles with the Land Transportation Office (LTO).
TPL stands for “third-party liability,” but in the Philippines, it’s also known as “compulsory third-party liability insurance.” TPL protects you from liability in the event of an accident that injures or kills a third party, as the name implies. TPL insurance is required for all types of vehicles, including personal automobiles, commercial vehicles, lorries, and motorbikes.
What is the difference between TPL and comprehensive insurance in the Philippines?
Car insurance is one approach to control risk because accidents happen no matter how skillful a driver is. Insuring an automobile protects you from unforeseen costs in the event that it is destroyed, stolen, or if a rider or driver is hurt. Car insurance is supposed to save drivers from having to pay thousands of dollars in repairs or hospital bills. It also gives you peace of mind whenever you’re on the road.
So, what is the process of getting car insurance? According to an insurance business, car insurance is a contract policy obtained by a vehicle owner in which the insured pays a premium in exchange for coverage provided by the insurance company. The extent of coverage is determined by the type of policy acquired. It can range from basic coverage for bodily harm and death of a third party to more comprehensive coverage for property damage, personal injury, theft, and other risks. Before registering or renewing their automobiles at the LTO, all vehicle owners must acquire a mandatory Third Party Liability (TPL) insurance policy. In the event of an accident, TPL compensates the third party. Comprehensive car insurance is available for an additional fee, although it is not required by law.
As a result, once a TPL or Compulsory Third-Person Liability insurance (CTPL) is purchased, the car user or owner is protected against indemnification or financial obligations to any third party wounded or killed by the insured vehicle. All vehicle owners in the Philippines must obtain CTPL coverage before registering their vehicle in order to obtain the minimum car insurance coverage required to lawfully drive in the Philippines, as mandated by the LTO.
Any liabilities incurred by the insured in terms of bodily harm and/or death of a third party caused by the operation of the insured vehicle are covered, as specified in most CTPL plans. The benefits for the third party are mentioned in the policy or at the back of the COC in circumstances of death or bodily injury.
Third-party liability only applies to third-party injuries or deaths. It does not cover the insured’s personal injury or death, as well as the injuries or deaths of his or her family or staff. It also excludes coverage for damage to the insured vehicle or third-party property. A third-party person is entitled to P70,000 in death indemnity and P30,000 in burial and funeral expenses in the event of death.
Bodily Injury expenses such as hospital rooms, surgical expenses, anaesthesiologist’s fees, operating room, medications and medicine, and even ambulance prices are covered by the CTPL’s third party claim. In addition, no third-party proof is required in cases of death or physical damage “In order to sue the CTPL, you must prove “blame.” The third party must merely establish the claim by submitting an accident police report under oath. They must show a death certificate in the event of death. They must submit a medical report or hospital disbursement regarding the reimbursement claim in the event of an injury.
Comprehensive Car Insurance in the Philippines, on the other hand, offers higher protection than CTPL insurance, according to one insurance company. It provides coverage for accidents that are not caused by a collision, including as flooding, theft, or fire.
We expect comprehensive car insurance to be comprehensive, but in reality, it varies between firms. As a result, depending on the coverage limit and quantity, insurance providers may provide additional benefits and coverage.
At first, I truly believed that when we say comprehensive, we mean complete, and that we should expect it to cover all possible damages, including what is now commonly referred to as “collateral damage.” “Natural disasters are referred to as “Acts of God.”
In my opinion, the ideal rule of thumb is to drive only when you are physically fit and mentally clear. Driving demands you to use all of your senses while driving the car to your destination. Your sense of smell is just as vital as the rest of your senses. Mobile phone blaring and ringing can be distracting, and driving is a good excuse for avoiding answering a call. Also, especially if you’re speeding down highways, learn to buckle up. Keep yourself safe.
How much does TPL cost?
TPL insurance is less expensive than comprehensive automobile insurance because it has a fixed premium. Depending on the type of vehicle you have, it might range from PHP 650 for modest vehicles to PHP 1,200 for large trucks.
The Insurance Commission (IC) sets the rates for all insurance carriers in the Philippines so that car owners all across the country may afford to insure their vehicles. The following are the IC’s annual TPL rates:
How much is TPL LTO?
Unfortunately, some people are hesitant to purchase automobile insurance, owing to the high cost. Some people forget that auto insurance is both a requirement of the Land Transportation Office (LTO) and a kind of reassurance or backup. Insurance protects all possible parties from financial liabilities/expenses in the event of an accident, whether caused by you or another party.
It begs the question, which is the best sort of insurance? Is it third-party liability (TPL) insurance or full coverage insurance? Let’s have a look at the alternatives.
Why is it critical for drivers to have this type of coverage? Consider what it’s like to be in the aftermath of an automobile collision. Your automobile was severely damaged, you were injured, and another vehicle was involved in the collision. Without TPL, you will not only be responsible for your own accident-related expenses, but you may also be held liable for the other party’s injuries and losses. Because drivers do not have financial protection, this can put them in a perilous situation. More importantly, this is intended to teach drivers how to be more responsible when driving.
Third-party liability (or TPL) insurance protects a person from certain liabilities arising from third-party-related mishaps or accidents. The LTO, as previously stated, needs this when purchasing a new car or renewing a vehicle’s registration. This means that you must obtain TPL coverage before you can even drive your vehicle on the road, according to the law. As a result, drivers on the road are protected from third-party losses and injuries. But how much will it set you back?
The cost of TPL is an advantage. TPL costs roughly PHP 650 per year and provides a maximum of PHP 100,000 in coverage. TPL rates are consistent among models of the same vehicle type, implying that no insurance firm can charge more than the Insurance Commission has determined (IC).
That means that whether you buy a Toyota Vios or a Mitsubishi Mirage, the TPL will cost you PHP 650. This applies to SUVs, pickup trucks, and crossovers, as well as private utility vehicles.
As a result, paying annually is cost effective and provides coverage of up to PHP 100,000. TPL, on the other hand, does not provide complete protection. “Select liability” is the crucial phrase here. So, while you are financially covered from injury, death, and property damage caused by a third party, you will be responsible for any harm to yourself or your car.
TPL can also just cover people who are not inside the car. This could be a random pedestrian, another car, or someone who isn’t a family member. TPL, on the other hand, will not cover you if you accidently hit a family member or a coworker who works under you.
Furthermore, if you need to pay for your own hospitalization, vehicle repair, or legal fees, you will have to do it from your own funds. Comprehensive Insurance, on the other hand, is for individuals who want more protection.
Comprehensive insurance, unlike TPL, is not required by law. However, it actually gives a motorist with extra protection. It not only protects you and your passengers from third-party accident costs, but it also protects you from liability. Comprehensive insurance is the finest protection a motorist can have against bodily injury, property damage, personal accident, theft, and personal damage.
The sole disadvantage of comprehensive insurance is its high cost. You can get comprehensive insurance for PHP 12,000 per year, depending on your budget and the worth of your car. However, if you require more coverage beyond the normal package, you can apply for additional coverage at a cost of a higher yearly premium, which can reach PHP 20,000.
A Toyota Vios 1.3 J, for example, can have annual coverage of around PHP 15,000 per year. When you add in a few extras like roadside assistance, towing, and Acts of God coverage (which I’ll explain later), the annual cost can easily reach PHP 22,000 or more.
Although it is costly, it gives the best coverage in the event that your vehicle is involved in an accident or incident.
So, your car is finally covered by insurance. However, you will still be charged a participation fee. You might be wondering what that is. A participation fee is a sum of money paid to an insurance provider each time you need to file a claim. You must also ‘participate’ in the cost of your car’s repair as an insurance holder.
Participation fees are required by insurance companies for a variety of reasons. To begin, the car’s driver is responsible for any damage the vehicle sustains during an accident. Second, participation fees act as a deterrent to persons who engage in fraudulent behavior. Last but not least, it is designed to deter car owners from misusing their insurance benefits.
What is the cost of participation? If you have TPL coverage, it depends depend on the size of the vehicle. Comprehensive insurance normally costs between 0.5 and 1.0 percent of a car’s current depreciated value. Only when you are at fault in an accident are you compelled to pay this type of cost. If you are not at fault, the other party’s insurance company will reimburse you through your own insurer.
Comprehensive insurance might provide you with advantages not available on TPL. Roadside help, free towing, fuel delivery, ambulance service, tire repair, battery jumpstart, and even 24/7 customer service are all options depending on the insurance coverage.
Acts of God (AOG) coverage is likely the most crucial benefit. But, before we go any farther, a word of caution. AOG isn’t typically included in full-coverage insurance plans. First, see if it’s included in the policy. If not, you’ll need to add an AOG policy on top of it.
You will be able to sleep better at night after you have AOG. Your insurance company will cover accidents caused by flash floods, earthquakes, and typhoons if you have it. Animal interaction (such as hitting an animal on the road), volcanic eruptions, fires, and even explosions are all covered by AOG. Comprehensive insurance may also cover elements of your car that have been stolen.
What would AOG set you back? The cost of AOG coverage varies according on the car’s make and model, as well as its value (especially for second-hand cars). It can cost between PHP 3,000 and PHP 6,000 on some cars, and between PHP 7,000 and PHP 9,000 on more premium models. So, if you’re thinking about acquiring AOG protection, do some research to see which insurance coverage is best for you (and your budget).
It’s not inexpensive, but compared to the trouble of dealing with a damaged vehicle that isn’t covered by AOG, it’s a little amount to pay.
Now comes the difficult question: is comprehensive insurance worthwhile? Yes, TPL is mandated by law and is more cost-effective on a yearly basis. However, due to its limits, it does not provide complete coverage. While it protects you from third-party liability, you are still responsible for any damage to your car or yourself.
Meanwhile, because of the aforementioned ‘Acts of God,’ comprehensive insurance gives you extra peace of mind. However, keeping your car insured on an annual basis costs a fair penny. Comprehensive insurance, on the other hand, ensures that you are well-protected against accident, personal property loss, theft, and even natural disasters.
Some people may consider comprehensive insurance to be an unnecessary expense. Some people may not be persuaded to pay more because TPL already provides financial security. But, just like with health insurance, wouldn’t you prefer a higher level of protection to protect you from potential financial responsibilities or expenses?
Some people may not think it’s worth it to insure a 20-year-old automobile with full coverage, but others believe their prized possession justifies it. In any case, TPL insurance is essential at the very least in order to get your car registered in the first place. You’ll be a liability for everyone on the road if you don’t have it.
Why is TPL insurance mandatory?
The Metro Manila Accident Reporting and Analysis System (MMARAS) in the Philippines recorded a total of 65,032 accidents in the country’s main metropolitan area in 2020, with 337 people killed. Consider what would happen if none of those automobiles were insured.
Important things like motor vehicle insurance are readily overlooked in a country where austerity is ingrained in the culture. The majority of Filipinos will always take the cheapest alternative, regardless of the implications. To push Filipinos to be more careful on the road, the government has to make TPL vehicle insurance mandatory.
What is third party liability?
Third-party liability relates to your responsibility to a person or entity who was not involved in the accident. But who is this mysterious third party? Is it possible that someone was hit by a car? What about the people inside the vehicle?
According to paragraph (c) of Section 386 of Chapter VI of the Philippine Insurance Code:
“Any person other than a passenger as defined in this section, including a member of the household, or a member of the family within the second degree of consanguinity or affinity, of a motor vehicle owner or land transportation operator, as likewise defined herein, or his employee in respect of death, bodily injury, or property damage arising out of and in the course of employment.”
This means that the third party can be anyone outside the vehicle who isn’t a family member (including your spouse and in-laws) or a household member. If you strike a pedestrian by accident, your TPL insurance will cover the victim’s expenditures. Unfortunately, if you strike your caregiver by accident, your TPL will not cover his or her medical expenses.
What about the people in the automobile, though? Fortunately, the same part of the Insurance Code also defined the term passenger.
“Any fare-paying person being transported and conveyed in and by a motor vehicle for remuneration, including people specifically allowed by law or by the vehicle’s operator or his agents to ride without fare.”
This definition has a lot of potential ramifications. Let’s take a look at some of the most common sorts of passengers and their TPL coverage.
What does TPL insurance cover?
The medical or funeral expenses of a third party involved in an accident are covered by your TPL insurance policy. The victim and his or her immediate family will receive financial support of up to $100,000, according to CTPL.
- If a third party dies as a result of an accident, the third party’s immediate family will be awarded 70,000 in death indemnity and 30,000 in burial expenses. The same sum can be obtained by a third-party passenger.
- If a third party is injured as a result of an accident, the third party is entitled to medical services up to $100,000. CTPL insurance can cover up to 45 days of hospitalization at a cost of $500 per day. The victim has up to 20,000 in medicine.
- Your TPL coverage will pay $50,000 if an accident results in the permanent dismemberment of a third party. This involves the amputation of limbs, hands, fingers, toes, and feet, as well as the loss of both eyesight and total disability (being bedridden permanently).
What is the difference between TPL insurance and comprehensive car insurance?
In the Philippines, TPL insurance is required. It also only protects you from culpability if you cause an accident that results in the injury or death of a third party. It doesn’t cover your own bodily injuries or vehicle damage because it’s the most basic and least expensive sort of coverage.
On the other hand, comprehensive car insurance is not needed by law. It does, however, provide a broader insurance coverage, not just for you but also for your passengers. Own damage, theft, passenger personal injury, acts of God, roadside assistance, and towing coverage are just a few of them.
How and where do I get TPL Insurance in the Philippines?
1. Prepare the CTPL insurance documentation listed below.
2. Find a TPL insurance provider that is LTO-accredited and purchase your TPL coverage from them.
3. You’ll receive a policy with terms and conditions, as well as a Certificate of Cover, or COC, once you’ve made your purchase. Remember to make duplicates of all documents you receive.
4. Present these documents to the LTO at the time of registration to show that your vehicle is covered by TPL automobile or TPL motorbike insurance (if you own a motorcycle).
Can I get CTPL insurance online?
Is it possible to apply for a CTPL policy online? Yes, you most certainly can! CTPL is available online from a number of insurance companies.
The procedure entails filling out a registration form on their website and paying the price using a credit or debit card. Your policy and Certification of Cover (COC) will be sent to the email address you provided.
The Certificate of Cover includes information such as the insured’s name, car plate number, color, chassis number, and the insurer’s limit of responsibility.
How much is TPL insurance in the Philippines?
Unlike comprehensive car insurance, which can cost up to $15,000, TPL insurance is less expensive and has a set price. Depending on the sort of vehicle you have, it might range from 650 to 1,000 dollars. TPL insurance premiums are regulated by the Insurance Commission (IC) for all insurance companies, ensuring that car owners across the country can afford to insure their vehicles. The annual TPL prices in the Philippines as prescribed by the IC are listed below.
How do I file a claim for TPL insurance in the Philippines?
It’s always preferable to remain calm when the unavoidable occurs. Before you can file a claim, you must collect all pertinent information about the incident. Contact your car insurance company right once and report the damage or loss using the information below. The vehicle insurance companies will assist you through the rest of the process of filing a claim.
What are the requirements for filing a CTPL claim?
To complete your TPL insurance claim, your insurance company will want you to produce certain documentation. The following are the essential conditions you must meet in order to be secure.
- A thorough explanation of the occurrence and who is to blame must be included in the police report.
- Fill out an online form from the insurer’s website or go to their office to fill out the form in person.
You must additionally prepare documentation based on the nature of the accident, in addition to the fundamental documents.
How do I know if my insurance is comprehensive or third party?
One thing we all know is that the fundamental distinction between third-party car insurance and comprehensive vehicle insurance is coverage. Third-party insurance, as the name implies, only covers third-party liability, whereas comprehensive insurance also covers damage to one’s own car.
What does Mvuc mean?
The Motor Vehicle User’s Charge (MVUC), sometimes known as a road user’s tax, is paid when cars are registered and/or renewed annually with the Land Transportation Office (LTO). The LTO registered 11.6 million motor vehicles (MVs) in 2018, with motorbikes accounting for 62% of the total (7.2 million). Hired motorbikes with sidecars (tricycles) and non-conventional motorcycles are among them (e.g. electronic tricycles, 3-wheeler motorcycles).
Does LTO require car insurance?
- Certificate of Emission Compliance (CEC) – To obtain a CEC, your vehicle must only pass an inspection and an emission test.
- After the inspection, a properly completed and approved Motor Vehicle Inspection Report (MVIR) will be obtained and sent.
You won’t be able to renew your license without ALL of these documents. If you have to, use the Xerox machine at the branch. You’ll simply have to pay a little price to do so.
Compulsory Third Party Liability (CTPL) is a legal requirement for LTO registration or renewal of your car since it covers death or bodily injury to a third party in the event of a traffic accident. Make sure you purchase one from a reliable insurance company like Pioneer at a reasonable price. Simply go to the Customer Service or Business Center of the SM Store in the SM mall closest to you!
What is MVRR number?
The LTO’s MVRR No. 63231478, also known as LTO Form No. 2, is an official document. It’s a copy of the vehicle’s registration fee payment receipt signed by the owner. The owner’s copy of MVRR No. 1 was forged by the petitioner.
Is 3 years insurance mandatory for cars?
The validity of any type of car insurance has traditionally been one year from the date of policy issue. However, the Supreme Court decreed in July 2018 that all new vehicle insurance policies must include third-party liability coverage for a term of three years. This was implemented to increase the number of people who have vehicle insurance and to improve help in the event of an accident.
A complete policy can be obtained for one year at a time, however a third-party liability protection must be granted for three years. This complicates the process, as having a separate insurance policy for third-party liability and another for comprehensive coverage that must be renewed annually is difficult to handle.