Does it sound strange that you need to get two insurance products for your vehicle? Aren’t they all the same? Think about it. The government is mandated provides its own public insurance policies—Social Security System (SSS) for private employees and the Government Service Insurance System (GSIS) for government employees.
For some citizens, they still enroll in insurance products given by private companies. With two insurance policies, their lives and health are secure.
It’s the same for your vehicle. While you can apply for a comprehensive car insurance, you are required to apply for the Compulsory Third Party Liability insurance, or CTPL. Many experienced car owners are familiar with the CTPL, but for the new car buyer, what can you expect with this mandatory insurance policy?
Compulsory Third Party Liability (CTPL) is also known as compulsory motor vehicle liability insurance. It protects the owner of the vehicle from financial obligations to anyone who is injured or killed by the insured vehicle. Owners of cars and motorcycles are required to get this coverage before they register their vehicle to the Land Transportation Office (LTO).
Before you get a CTPL, you need to know the fundamentals of this insurance. This includes a couple of misconceptions.
One misconception is that the CTPL covers the driver of the insured vehicle. The CTPL only covers third parties, and that does not include the driver. Third parties mean anyone aside from a passenger who is not a member of the insured’s family or employee.
A CTPL is different from a comprehensive car insurance, and some owners think that this can substitute what a car insurance offers. A comprehensive car insurance offers more coverage than a CTPL, and covers the following: loss and/or damage of vehicle, excess bodily injury, property damage, no-fault indemnity cover, and auto passenger personal accident.
With this said, you can get a CTPL insurance from any licensed nonlife insurance provider. CTPL insurance rates from different providers do not differ so much from one another.
The CTPL insurance isn’t that expensive, compared to the problems you might face on the road. If you plan to get a one-year coverage, you’ll need to pay PhP560.00 for private cars and PhP250.00 for motorcycles. If you opt for a three-year coverage, private cars can pay PhP1,610.00 and motorcycles PhP720.00.
The CTPL only covers injury or death of a third party. It does not cover the damages of the insured vehicle and the driver, or any damages to the property of the third party.
With the CTPL, the insurance company agrees to pay for a third party’s hospitalization, bodily injury, or death in a vehicle-related accident. They, however, do not pay for loss or damage of property.
Even with the CTPL policy, you still have to be a responsible motorist. Keep calm and make sure to read the fine print. In the event of an accident, call the police for an investigation, or settle matters with the parties affected. Make sure you have photos taken during the accident (but you don’t need to post it on social media).
Remember: Driving on the road without CTPL is considered unlawful in the country, so you are required to get one when you get a new car.
In the end, the CTPL complements your existing comprehensive car insurance that it protects other people inculcating massive expenses over a car accident. It pays to spend a little more to protect yourself, your vehicle, and other people. With two car insurance policies in your glove compartment, you should always remember to be more responsible on the road.