Car smart: Filing a Compulsory Third Party Liability (CTPL) insurance claim

As part of its efforts towards road safety awareness, Philkotse.com presents a guide on how to claim Compulsory Third Party Liability (CTPL) insurance, in the event of an accident on the road.

I. Why is Compulsory Third Party Liability (CTPL) insurance important?

Every road vehicle carries Compulsory Third Party Liability (CTPL) insurance, usually upon first-time registration and subsequent renewals. The primary purpose of the CTPL is to cover the driver’s financial liability towards a third party i.e. anyone not belonging to the driver’s family or employ, who might be injured or killed by the insured vehicle.

While CTPL might be commonly interpreted as a substitute for comprehensive insurance, this is actually not the case. For one thing, comprehensive insurance is optional (unless the vehicle in question is still under amortization), while CTPL is required by law.

Another thing is that comprehensive insurance provides a wider coverage of in terms of possible scenarios (theft, total loss, property damage, excess bodily injury), unlike CTPL which focuses on the medical and/or burial expenses of third-party victims.

Without the CTPL, the driver’s culpability is magnified in the event of a road accident involving other individuals, which might lead to even greater legal and financial liabilities at the very least. You might end up paying for medical and burial expenses out of your own pocket, which goes without saying is a huge drain on your resources.

4 steps to take before filing an insurance claim

Up ahead, we’ll be giving tips on filing a Compulsory Third Party Liability (CTPL) Insurance claim.

II. Tips in filing for Compulsory Third-Party Liability (CTPL) of Insurance claims

When filing Compulsory Third Party Liability (CTPL) insurance claims, it’s important for third parties to be aware that the CTPL will not necessarily cover every expense, with the insured driver or owner having the responsibility to assume the balance; otherwise, the third party victims or their next of kin have the right to pursue legal action against the insured.

1. Read the fine print and scrutinize all details in the policy of the insured car

Despite CTPL insurance offerings having a generic nature, there might be some points that need to be read and understood better. Everything may look clear at face value, but it’s important to ensure no room for error when it comes to claiming what is due from the policyholder.

Scrutinize to the policy in detail, especially regarding the liability of the policyholder to the third party. Neglecting crucial details in the policy might result in difficulties getting the claim settled.

2. Maintain presence of mind as much as possible after an accident

Ensure that no one is seriously hurt during the accident, or that medical help will be available to those who are. Have everything documented through photos and/or video evidence to expedite the process.

Keep calm and ensure that no one is seriously hurt during the accident

3. Victims have the right to hold the policyholder accountable

Rare are policy owners who will admit their own fault in an accident and settle promptly; in most cases, insurance companies will try to bargain with the victims to lessen the damages due them. Sometimes, amicable settlements are discouraged to avoid paying the full amount. Victims should possess medical and police reports detailing the extent of their injuries to strengthen their claims and collect compensation as much as the policy can cover.

4. Seek assistance from authorities

Have the police conduct and examine all the evidence, and interview those involved in the accident. In the absence of an amicable settlement from the policyholder, the chances of collecting CTPL coverage are not good. Secure the police report of the accident and all pictures to increase the likelihood of collection.

The police report is a piece of valuable evidence when claiming for the car accident expense

5. Cooperate with the policyholder when necessary

Even if third-party victims are legitimately the aggrieved party in an accident, sometimes anger will be counter-productive. While compensation is certainly due to the policyholder, a mutual agreement is sometimes better to ease the tensions between both parties. A positive situation makes it easier for victims to claim compensation for damages.

6. Confirm how to claim compensation from the insurance provider

Each insurance companies in the Philippines have their own policy. Familiarize yourself with the insurer’s policies when claiming compensation, including other requirements which can help expedite the processing of claims.

FPG insurance focuses on providing risk management solutions as well as best insurance policies to Filipinos

7. When all the papers are available, have the compensation for the claim processed

Double check all documented evidence to see if the liability of the insured party is strong enough for you to make a claim.

WRAPPING UP

Learning how to file Compulsory Third Party Liability (CTPL) Insurance claims might sound tedious, but it can spell the difference between being able to surmount a medical emergency and being deep in debt over something that you had no control over. In any case, claiming for damages to personal injury and/or death is well within your rights as guaranteed by law.