Four Things You Should Know About CTPL

January 13, 2017

If you happen to own a motor vehicle, you are most likely familiar with CTPL or Compulsory Third Party Liability insurance.

All motor vehicle owners are required by the Land Transportation Office (LTO) to secure a CTPL insurance upon registration of their vehicle. As an owner, you must understand its benefits, coverage and the reasons why it is mandated by the government for you to appreciate its value. Listed below are the basic things you need to know about CTPL:

1. What you are protected from:

From the name itself, it protects you from any possible liabilities to a ‘third party’. The liabilities pertain to damages or any bodily injury and/or death of the third party arising from an accident involving your car.

2. Who are considered as a third party:

For you to understand this concept, you have to know the difference between a third party and a passenger, as they cannot be both at the same time.

As defined by the law, a third party is any person other than the passenger, unrelated to the car owner in terms of household, family, and work. This means that your friends and other persons who are not your relatives are considered as a third party.

On the other hand, a passenger is any person paying for the transportation being rendered or a person authorized by the law or operator to ride the insured car without fare. This is most applicable to government and public utility vehicles.

3. How much and for how long is the CTPL coverage:

The basic CTPL covers the car owners’ legal responsibility from any possible liability to a third party caused by bodily injury and/or death arising from an accident with the use of the insured vehicle. This coverage assures the victim and his family immediate financial assistance of up to ₱100,000.

Just like your car registration, the CTPL coverage is only valid for a year, that’s why you should make sure that you renew your CTPL insurance every year for you to register your car.

Friendly Tip: Take note of the last two digits of your plate number. It indicates the date on when you should renew your car registration.

4. Where to get your CTPL insurance:

You have to be cautious about where you get your CTPL insurance. There are some cases that fixers or other agents put additional cost when selling CTPL to car owners, especially new ones. Make sure that you get yours at the right price.

There are insurance companies in the Philippines that are accredited by the LTO to issue CTPL insurance. With this, it is guaranteed that your CTPL is genuine and your money will not go to waste.

It is important to always be protected, no matter where the road may take you. Your car’s CTPL insurance is more important than you know. Make sure that you get yours at the right time and at the right price.

Buckle up your seat belts, drive safely and enjoy your journey on the road!

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