Compulsory Third Party Liability (CTPL) Coverage
A mandatory for all vehicle. This coverage, subject to the limits of liability, will answer for the death, disablement and medical expenses of a person injured because of an accident involving your vehicle. This is the basic car insurance coverage required.
There are two kinds of Third Party Liability: Bodily Injury (BI) and Property Damage (PD) and in this case, the policy will only effect if the injury or damage was of course caused by the operation of the insured’s motor vehicle.
In the Philippines, a Compulsory Third Party Liability (CTPL) insurance policy is required before any motor vehicle can be registered with the Land Transportation Office (LTO) whether for personal or commercial use. The purpose of requiring CTPL cover prior to registration of the vehicle is to provide protection for the general public. When a CTPL policy is purchased, the assured is given an insurance policy with conditions. Attached to the policy is the Confirmation of Cover or popularly known as COC. This COC is then showed to LTO upon registration as a proof that the motor vehicle has third-party insurance cover. Some of the details shown in the Certificate of Cover (COC) are the name of the assured, basic details of the vehicle such as serial Number, chassis number, plate number, color, and the insurer’s limit of liability. Moreover, schedule of benefits such as death benefit, funeral expenses, permanent disablement and dismemberment and limits for medical and hospital reimbursement are likewise shown in the schedule of benefits for death and bodily injury.
In case of an accident, a CTPL cover for a PUV provides a total death benefit of Php100,000 for the passenger-victim and Php100,000 for third-party victims. Whereas for a private vehicle, the Php100,000 insurance coverage is for third-party victims only. Moreover, under the ‘no fault’ clause of the policy, a third-party victim is entitled to a sum of max of Php15,000 without proving negligence.
A CTPL policy may be bought from any licensed insurance company. CTPL premium rates are mandated by the Insurance Commission across all insurance companies. Any deviation from the rate, may it be higher or lower should be reported to the Insurance commission.
There are fly by night companies offering Compulsory Third Party Liability (CTPL) in LTO. Unsuspicious motorist may simply just buy a CTPL from a person or company to speed up the car registration process without ensuring its legal existence. Some Filipinos think that whether fake or not, the most important thing is that they were able to show a Certificate of Cover and be allowed to register and complete the registration process. This is not the case, as when the need arise that you accidentally hit a person, you will simply be faced with a fake insurance coverage and will be shelling out hundreds of thousands just because your CTPL is fake.
Here is the list of licensed Insurance Companies in the Philippines tentatively ranked according to Net Worth for the year 2013:
- Pioneer Insurance & Surety Corporation
- Malayan Insurance Company, Inc.
- BPI/MS Insurance Corporation
- AIG Phil. Ins. Company (Chartis Phils., Inc.)
- Philippines’ First Insurance Co., Inc.
- Cibeles Insurance Corporation
- Charter Ping An (Phil Charter Ins. Corp)
- Standard Insurance Company, Inc.
- Alliedbankers Insurance Corporation
- Starr International Insurance Phils., Branch
- Mapfre Insular Insurance Corporation
- Philam Life and Gen. Insurance Company
- Prudential Guarantee and Assurance Inc.
- Bankers Assce. (Malayan Zurich)
- First Nationwide Assurance Corporation
- BF General Insurance Company, Inc.
- Blue Cross Insurance, Inc.
- UCPB General Insurance Company, Inc.
- Perla Companie de Seguros, Inc.
- QBE Seabord Insurance Phils, Inc.
- Stronghold Insurance Company, Inc.
- Commonwealth Insurance Company
- Pioneer Intercontinental Inc. Company
- Asia Insurance Corp.
- Insurance Company of North America
- Pioneer Asia Insurance Corporation
- Plaridel Surety & Insurance Company
- Reliance Surety & Insurance Company
- United Insurance Company, Inc.
- Sterling Insurance Company
- Corporate Guarantee and Insurance Company, Inc.
- People's General Insurance Corporation
- Federal Phoenix Assurance Company, Inc.
- MAA General Assurance Philippines, Inc.
- Petrogen Insurance Corporation
- Empire Insurance Company
- Alpha Insurance and Surety Company, Inc.
- Liberty Insurance Corporation
- Centenial Guarantee Assurance Corporation
- PGA Sompo Japan Insurance, Inc.
- Manila Surety & Fidelity Company Inc.
- Mercantile Insurance Company, Inc.
- Philippine British Assurance Company, Inc.
- Pacific Union Insurance Company
- Monarch Insurance Company, Inc.
- Paramount Life and Gen. Ins. Corp.
- Investors Assurance Corporation
- Western Guaranty Corporation
- Visayan Surety & Insurance Corporation
- Fortune General Insurance Corporation
- Intra-Strata Assurance Corporation
- New India Assurance Company, Ltd.
- Country Bankers Insurance Corporation
- AFP General Insurance Corporation
- Great Domestic Insurance Company of the Philippines, Inc.
- First Integrated Bonding & Insurance Co., Inc.
- Premier Insurance and Surety Corporation
- Republic Surety and Insurance Company, Inc.
- Milestone Guaranty and Assurance Corporation
- Security Pacific Assurance Corporation
- Meridian Assurance Corporation
- R&B Insurance Corporation
- Asia United Insurance, Inc.
- Far Eastern Surety & Insurance Company, Inc.
- Solid Guaranty Inc.
- Travellers Insurance & Surety Corporation
- Metropolitan Insurance Company
- Northwest Insurance & Surety Company, Inc.
- FLT Prime Insurance Corporation
- Philippine Fire and Marine Insurance Corp.
- PNB General Insurers Company, Inc.
- CLIMBS Life and General Inc.