Having auto insurance is a necessary expense for every car or motorcycle owner. With an average of 160 accidents each day in Metro Manila in 2021, auto insurance still gives you a peace of mind whenever you’re driving. However, a lot are unaware that there are two different auto insurance policies you need: The Comprehensive Auto Insurance and Compulsory Third-Party Liability (CTPL).
Liberty Insurance is here to explain to you what the two auto insurance policies are, they’re differences, and why they’re both important.
What is Compulsory Third-Party Liability (CTPL)?
One of the most frequent questions clients ask Liberty Insurance is how clients can receive compensation for the damage to their vehicle or losses of the injured driver/passenger from the accident using the CTPL policy. Unfortunately, motorists make this common mistake, assuming the CTPL insurance covers damage to their own vehicles. That’s why motorists need to be aware of the actual coverage and benefits of a CTPL, in case an accident occurs.
Compulsory Third-Party Liability (CTPL) is a mandatory motor car insurance policy that a car or motorcycle owner is required to have. When motorists register their vehicles in LTO every year, they are mandated by the law to buy a CTPL. With a Compulsory Third-Party Liability policy, the driver of the motor vehicle is protected from any liability for injuries or death of a third party as a result of a vehicular accident. In simpler terms, the CTPL covers only the third-party victims on the road, not the driver/passenger of the insured vehicle.
In the event of an accident, the authorized driver is either the owner of the insured vehicle or any person with the permission to drive its vehicle, provided that they are not disqualified by order of Court Law. On the other hand, the third party is any person other than a passenger, as defined in the law, and shall also exclude a household or family member within the second degree of consanguinity or affinity.
Compulsory Third-Party Liability (CTPL) Coverage and Benefits
With the limit of Php 100,000 for all types of vehicle, the CTPL policy pays the sums necessary to discharge liability of the insured and covers the third-party’s:
- Death indemnity, including burial and funeral expenses
- Bodily injuries and fractures
- Permanent Disablement
What is Liberty Insurance’s Comprehensive Auto Insurance?
Unlike the CTPL policy, Comprehensive Auto Insurance offers more coverage when you’re on the road. It’s an optional auto insurance to get added protection from financial liabilities to give yourself a peace of mind.
Comprehensive Auto Insurance is a one-year coverage for the losses or damages of the insured motorcycle or auto vehicle, injuries/death of its drivers and passengers, damages of third-party property, damages from acts of nature, and theft.
Comprehensive Auto Insurance Coverage and Benefits with Liberty Insurance
Comprehensive Insurance coverage for private cars, commercial vehicles, and motorcycles.
- Loss/Damage and Own Damage/Theft of Vehicle
Protects your vehicle from the damages caused by an accident, including:
- Accidental collision or overturning due to accident, or consequent upon mechanical breakdown or upon wear and tear;
- Damages from fire, external explosion, self-ignition, or lightning; losses from burglary, housebreaking; Malicious act or theft;
- Damages while in transit by road, rail, inland waterway, lift, or elevator.
- Excess Bodily Injury
Pays the liability in excess of the Php100,000 limit of the CTPL policy.
- Third-Party Property Damage
Provides coverage for the damages to third-party vehicles or properties that the insured vehicle’s driver has damaged.
- Auto Passenger Personal Accident
Covers the driver and the passengers in the event of death or bodily injury sustained from an accident.
- Acts of Nature
Compensates for the damages caused by earthquakes, typhoons, flood, volcanic eruptions, and other natural calamities.
- 24/7 Roadside Assistance
In partnership with Assist & Assistance Concept, 24-hour roadside assists the insured in case of an accident or vehicle breakdown while traveling. The vehicle should not be more than 10 years old.
What You Need to Get Your Car Insured
- Name of Insured (either Individual or Corporate)
- Address of Insured
- Make/Model/Type of Body/Transmission Type of the Vehicle
Why Should You Get Comprehensive Auto Insurance?
Road accidents are sometimes unavoidable. But it’s always safe to have auto insurance to free yourself from sudden financial worries.
According to MMDA, there were 58,447 road accidents, averaging 160 accidents each day, in Metro Manila alone in 2021. Among the Metro Manila cities, Quezon city leads the most accidents with 21,978, followed by Manila city with 4,666, and Makati city with 4,099.
The top 3 causes of road accidents are loss of control of the vehicle, with 81 instances recorded; human error, with 6,909 incidences; and No Accident Factor, with 51,345 occurrences, meaning there were no recorded causes of the accident.
If you’re looking to Drive Worry Free, then put aside some money and buy yourself a Comprehensive Auto Insurance. Liberty Insurance’s auto insurance covers the losses or damages of the insured vehicle, its drivers and passengers, theft, third-party property damage, and acts of nature.
Liberty Insurance Corporation
Head Office: JCS Building 119 Dela Rosa corner Carlos Palanca Street, Legaspi Village, Makati City
Telephone No: 8819 – 1961 to 66
Fax No.: 818 – 8639 / 819 – 5217
