Car Insurance Coverages and Claims
There are several car insurance coverages and claims that can be found in a policy. Let’s explore all of them here.
Your car insurance policy can sometimes read like a book written in a foreign language. It’s not unusual that you may have a hard time understanding everything that’s in it. But don’t worry. Here we’ll discuss everything there is to know about all the coverages and claims included in your car insurance policy.
Compulsory Third Party Liability (CTPL)
CTPL is mandatory for all vehicles that are going to be driven on Philippine roads. This coverage, subject to the Limits of Liability, pays all sums or expenses necessary to discharge the liability of the vehicle owner with respect to bodily injury and/or death to any Third Party in an accident caused by or arising out of the use of the motor vehicle.
When the CTPL limit has been exhausted, the Excess Bodily Injury/Excess Liability Insurance from the comprehensive car insurance will kick in. This car insurance coverage is separate from the CTPL. It is also subject to the Limits of Liability that will reimburse the vehicle owner for all sums actually paid by the vehicle owner to discharge liability in respect to bodily injury and/or death to a Third Party in an accident caused by the use of the motor vehicle.
Loss and/or Damage Cover
This coverage protects and indemnifies the vehicle owner against loss or damage of the motor vehicle and its accessories and spare parts resulting from Accidental collision or overturning, Fire, external explosion, self-ignition or lightning, Burglary, housebreaking or theft, Malicious acts. Coverage also extends to when the insured vehicle is being transported from one location to another.
Property damage, No fault indemnity cover, and auto passenger personal accident coverage
This coverage, subject to the Limits of Liability, will pay for all sums necessary to discharge liability of the vehicle owner in respect to damage to a Third Party property in an accident caused by and arising out of the use of the motor vehicle.
No Fault-Indemnity Cover
This coverage pays for any claim of bodily injury and/or death to any Third Party in an accident caused by the use of the motor vehicle without the necessity of proving fault or negligence of any kind, but is not to exceed ₱15,000.
Auto Passenger Personal Accident.
This coverage protects the passenger(s), including the driver of the motor vehicle, against bodily injury resulting in death or disablement caused by an accident while operating, riding in, boarding or alighting from the insured vehicle.
Exceptions or optional add-ons
Acts of God/Acts of Nature cover
This coverage protects and indemnifies the vehicle owner against loss of or damage to the motor vehicle and its accessories and spare parts resulting from flood, typhoon, hurricane, volcanic eruption, earthquake, and other natural catastrophes.
Strikes, Riots, and Civil Commotion cover
An extended peril that covers damages caused by strikers or rioters, or people involved in civil commotion such as during people power. As this is an added peril, the insured must request for this additional cover and should pay additional premium is added on top of the standard Comprehensive insurance.
Additional Accessories and Modifications
A coverage covering modifications or additional accessories to the vehicle such as mag wheels, audio system, upholstery, etc. It is very important to inform the insurance company of such additions and modifications as insurance companies cover only the original accessory, unless declared otherwise. These additional accessories and modifications adds value to the original value of the vehicle, therefore increasing the premium to be charged.