Getting Compulsory third-party liability (CTPL) insurance is a requirement for all car owners to accomplish, without it there is no way that any vehicle in the Philippines will be registered. To get the ball rolling; this primer will outline all you need to know about compulsory third-party liability (CTPL) insurance.
So, most car owners will have a better appreciation; instead of asking what it is! It is important for car owners to know things related to car ownership because fore-armed is well-armed and will be a benefit.
What this insurance scheme does is provide basic low-cost auto insurance; that is affordable for most drivers in general. This is a must for all owners of private or commercial vehicles to have, but will not be as complete as more expensive coverage plans. As is, this will do for most motorists who are content with it; but have other options to consider for car insurance.
The exact coverage of compulsory third-party liability (CTPL) insurance is car damage, disablement, death, or cover bills of those who survived the accident. If the insured car was the culprit of the accident, then only will claim is justified. Just keep in mind that it will not cover everything, but only a limited coverage only.
Everything you need to know about CTPL insurance
Below are 6 FAQs that are often associated with CTPL insurance that should be clarified, to avoid myths about its overall coverage!
1. What is third party person as mentioned in CTPL?
For clarification; all third-party persons are those outside the car when the accident happened, and are covered by the compulsory third-party liability (CTPL) insurance. Another aspect of this is that anyone riding in the car; who are messed up in the accident who aren’t family members is third-party persons. Coverage includes them, and that sums up what third-party persons mean for less confusion about the matter.
Pedestrians, cyclist or your passengers who are not related to car owners are covers by CTPL insurance
2. Is compulsory third-party liability (CTPL) insurance optional for the car owner?
It is one of the requirements to process the yearly registration of the car. When an accident happens; it is important to keep those papers on hand too! Go to any accredited compulsory third-party liability (CTPL) insurance agents; that is stationed near the LTO centers in all locations. Usually; it’s a one-stop shop where it is processed by the insurance agent. So, it’s quick and convenient for car owners.
>>> Check out more: Car insurance in the Philippines: Comparison of Comprehensive & Liability insurance
3. What does the compulsory third-party liability (CTPL) insurance cover actually?
To make it clearer here are the conditions that the CTPL insurance does cover and other vital tidbits for car owners to know about.
- If there is proof that the insured car causes the accident; then all expenses that should come from the car owner’s pocket will be footed by the insurer of the CTPL policy. Otherwise; without any CTPL to cover the expenses which are not an ideal situation at all!
- If the third-party ends up dead or survived the accident with the insured car. He or she will be given a certain amount for the funeral or hospital bills. If there are extra expenses incurred; the surplus will be paid for by the owner of the car insured. Basically, the CTPL insurance pays for most expenses but not everything.
Without CTPL, all expenses that should come from the car owner’s pocket
4. How far does the exact compulsory third-party liability (CTPL) insurance go?
To get everything into perspective; it only offers limited coverage in the policy. There are more comprehensive insurances to consider, but it will cost more than this basic insurance package to make everything clear and succinct.
5. Will the CTPL insurance cover personal injuries to the driver and damage sustained by the car insured?
When an accident happens to car insured or the driver is hurt in any way; there will be no remuneration of any amount. Because it only concerns what happens to the third party involved, this is the reality and forgoing CTPL insurance is neither an option because of this! Take note that only the third-party get paid; if relatives or any close employees are involved, they get nothing either. All expense will come from the car owner; no one else.
CTPL insurance doesn't cover vehicle breakdowns expense
6. Why is CTPL insurance important despite the limitations?
It does not provide the most coverage for the policy owner, but it does provide benefits that are the following.
- Without it; a policyholder is liable for what his car has done. Whether it results in hospitalization or a one-way trip; it will prevent a degree of criminal liability for the policyholder or a get free card.
- If there is a shortage of money; there’s no need for the policyholder to shell out any money. The insurer will foot all bills, but the excess will still come from the policyholder. Worse comes to worst the third-part is hospitalized; hospital bills will be footed by the insurer, but it works because the policy owner does not pay for every cost and expense.
Overall, the CTPL insurance provides a decent amount of protection, but other more comprehensive insurance will do better!
>>> See also: What kind of car insurance in the Philippines fit you the most
Norjan Ismail Abbas