Getting the car that you want marks the beginning of an ownership experience that places a premium on responsibility, one of the more important aspects of which is protection in the form of auto insurance.
Protecting your car is usually as simple as signing a piece of paper
When talking about cars, insurance coverage takes on two forms: there’s the comprehensive insurance and the third-party liability insurance or TPL. Compared to the former, the latter involves a shorter list of instances to provide monetary compensation for. The TPL has always formed part of the requirements that motorists comply with for vehicle registration renewal, being mandated by law.
That may soon change if the Anti-Red Tape Authority (ARTA) had its way, with ARTA Secretary Jeremiah Belgica proposing that the TPL insurance requirement be waived for vehicles that already have comprehensive coverage. He cited the need to streamline the registration process and ease the financial costs on vehicle owners, adding that the TPL is one of the services offered by fixers, which ARTA is campaigning against.
Third-party liability insurance or TPL mainly benefits unsuspecting victims such as pedestrians
According to Atty. Dennis Funa of the Insurance Commission, comprehensive motor insurance already includes TPL, along with Voluntary Third-Party Liability (VTPL) for excess bodily injury, covering expenses that would otherwise exceed the TPL’s coverage limit.
Among these expenses are medical bills for the victim’s hospital confinement, follow-up care and related medical treatment; lost income opportunities if the accident resulted in disability or dismemberment that impaired the victim’s ability to pursue gainful employment; funeral costs if the accident resulted in death; and legal fees should the victims or their families decide to file a suit.
TPL offers no coverage for vehicle damage or theft
Doing away with the TPL brings down the costs of registration somewhat (up to Php 650 on private vehicles and Php 1,300 for heavy trucks). This represents a boon for many motorists who regard the TPL’s coverage as redundant, given that its provisions are already contained within comprehensive insurance policies.
For those who are unwilling to shoulder the expenses of comprehensive auto insurance, the TPL is still available, although they will have to live with the limitations as it does not cover vehicle theft, damage, or destruction. Are you in favor of waiving the TPL for comprehensive insurance policy holders?
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