Looking for car insurance in the Philippines? Or more specifically, third party liability motor
insurance? It’s essential to understand the different types of coverage to ensure you’re
adequately protected. The two main options to consider are Compulsory Third Party Liability
(CTPL) and Comprehensive Auto insurance. In this guide, we list some of the top
considerations you need to know to make an informed decision, and choose the best
insurance package for your needs.
Understanding Car Insurance in the Philippines
Car insurance is crucial for car owners in the Philippines as it provides protection against
potential liabilities and financial losses for motor vehicles and their owners. A car accident
and other unforeseen events can result in costly damages, medical expenses due to bodily
injury, and other legal obligations. Having the right insurance company and coverage can
help alleviate these financial burdens, including for third-party victims.
Compulsory Third-Party Liability insurance, also known as CTPL, is a legal requirement for
all vehicles in the Philippines. It covers injuries, including potential mortality, caused by the
insured to third parties in case of an accident. A CTPL policy ensures that if an accident
occurs, the injured parties receive the necessary financial compensation for their losses.
Mandatory CTPL Insurance: Coverage and Limitations
1. Third-Party Damages
Compulsory Third Party insurance is a mandatory requirement for all vehicles in the
Philippines. It provides you and any other drivers (e.g. family members) of your vehicle with
cover against legal liabilities, due to bodily injury or fatality to third parties, arising from the
use of the insured vehicle in case of an accident.
2. Legal Compliance
CTPL is required upon annual registration of your vehicle with the Land Transportation
Office (LTO), and without CTPL, it is illegal to operate a vehicle on public roads in the
country. CTPL ensures that motor vehicle owners are financially responsible for any injury
they may cause to others.
3. Limitations of CTPL Coverage
While CTPL insurance is a mandatory requirement, it does have limitations. Third-party
insurance coverage may not be sufficient to cover all damages and losses faced by the
For example, it does not provide protection for damages to the insured vehicle itself, in terms
of theft, fire, or other non-traffic accident-related incidents.
Compulsory Third Party Liability Coverage versus Comprehensive Car Insurance
It is important to know the difference between what a compulsory third-party insurance policy
covers, versus a Comprehensive one. Here’s a quick list of what you need to know:
1. Damage to Your Vehicle
Unlike CTPL, Comprehensive car insurance provides coverage for the repair or replacement
of your vehicle in the event of an accident, regardless of who is at fault. This extends to
damages caused by collisions, overturning, and vandalism.
2. Theft and Fire
In addition to accidents, Comprehensive car insurance also protects against theft and fire-
related incidents. If your vehicle is stolen or damaged due to a fire, it will provide
compensation for the loss.
3. Third-Party Liability Insurance
While CTPL insurance is mandatory for covering injuries and fatality to third parties,
Comprehensive car insurance also includes this. If you’re responsible for an accident that
causes bodily injury or property damage to someone else, your comprehensive insurance
should cover the costs of their medical expenses and vehicle repairs.
4. Personal Accidents
Comprehensive car insurance often includes the scenario of a personal accident arising for
the motor vehicle owner and their passengers. This provides compensation for accidental
injuries sustained during a covered accident. It can help with medical charges,
hospitalization, or even payments stemming from permanent disablement.
5. Additional Benefits
Some comprehensive auto insurance policies in the Philippines offer additional benefits like
roadside assistance, towing services, and even covers natural disasters. These additional
benefits can vary between providers, so it’s important to review the policy details and choose
one that aligns with your needs and preferences.
Due to the broader range of coverage offered, the premiums for a Comprehensive car
insurance policy can be much higher as compared to CTPL car insurance. However, that
does not mean holding a comprehensive car insurance policy offers protection from every
Compulsory Third Party Liability Insurance Exclusions
in the Philippines
There are certain exceptions to CTPL insurance that motor vehicle owners should be aware
of. These exceptions extend to various situations, such as when the insured vehicle is used
in a manner contrary to specified restrictions in the policy.
Some of these exclusions include:
Unauthorized Driver(s): One notable exception pertains to accidents or liabilities arising
when the scheduled vehicle is operated by an individual who is not an Authorized Driver.
This condition underscores the importance of adhering to designated drivers to ensure the
validity of insurance coverage.
Sea vessels and inter-island transits: Accidents on board a sea vessel during inter-island
transits fall outside the scope of coverage, emphasizing the need for additional maritime
insurance in such scenarios. Unauthorized agreements leading to liabilities also remain
excluded from the insurance coverage, requiring policyholders to exercise caution and
adhere to the terms and conditions outlined in their insurance agreements.
Employee coverage: The coverage does not extend to bodily injury or fatality suffered by
individuals employed by the insured. This exception highlights the need for additional
coverage or compensation mechanisms to address potential liabilities involving employees.
Cruise the streets safely with Oona
Understanding car insurance is essential for vehicle owners in the Philippines to ensure they
are adequately protected, and third-party insurance is a vital aspect of motor vehicle
ownership. By understanding the different types of third-party insurance coverage available
and considering factors such as budget and specific needs, vehicle owners can choose the
best auto insurance policy to protect themselves, their vehicles, and others on the road.
And when it comes to car insurance, Oona stands out as the provider offering the most
comprehensive coverage in 2024. Oona should be your go-to choice for:
- Extensive Coverage Options
- Flexible Plans
- Exceptional Customer Service
- Competitive Pricing
Navigating the world of car insurance can be complex, but armed with knowledge and the
right insurance partner, you can confidently select the right coverage. Protect yourself, your
passengers, and your vehicle by investing in comprehensive car insurance that meets your
specific needs and offers the security you deserve.