CTPL Insurance in the Philippines: A Quick Guide for Filipino Motorists

Published: August 16, 2021 | Updated: September 2, 2021 | Posted by: Ricky Publico | Car Insurance

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Owning a car entails a lot of financial responsibilities. Aside from the car itself, you’ll be paying for things like registration, maintenance, and insurance. Many Filipinos choose to forgo the latter, thinking that being careful is enough. Newsflash! It’s not, mainly because before you can even drive your car, you need to buy a particular type of insurance called TPL insurance. What is it and why is it necessary for owning a vehicle in the Philippines? Let’s answer that with this guide.

What is TPL Insurance?

TPL (or CTPL insurance for others) is a basic car insurance that every car owner in the Philippines should get before registering their vehicles to the Land Transportation Office (LTO).

TPL means “third party liability,” but can sometimes be referred to as compulsory third party liability insurance in the Philippines. As the name implies, TPL covers you from liabilities in the event of an accident that will injure or kill a third party. TPL insurance is a requirement for all types of vehicles, from private to commercial vehicles, and even trucks and motorcycles.

Is Compulsory Third Party Liability Insurance Mandatory?

Yes. Motorists are required to purchase TPL insurance before registering their vehicles with the LTO.

Why is TPL Insurance Mandatory?

In the Philippines, the Metro Manila Accident Reporting and Analysis System (MMARAS) recorded a total of 65,032 accidents in the country’s main metropolitan area in 2020, resulting in the death of 337 people.[1] Imagine if all those vehicles didn’t have insurance.

In a country where frugality is embedded in the culture, important things like motor vehicle insurance is easily neglected. Most Filipinos will always choose the least expensive option, consequences be damned. That’s why the government had to make TPL car insurance mandatory: to force Filipinos to be more responsible on the road.

What is Third Party Liability?

TPL insurance - Third Party Liability

Third party liability refers to your liability to the third party involved in the accident. But who exactly is the third party? Is it anyone who got hit by the car? How about the persons inside the car?

According to Paragraph (c) of Section 386, Chapter VI of the Insurance Code of the Philippines:[2]

“A third party is any person other than a passenger as defined in this section and shall also exclude a member of the household, or a member of the family within the second degree of consanguinity or affinity, of a motor vehicle owner or land transportation operator, as likewise defined herein, or his employee in respect of death, bodily injury, or damage to property arising out of and in the course of employment.”

This means that the third party is any unsuspecting person outside the vehicle and is not a member of the family (which includes your spouse and in-laws) or a household member. If you accidentally hit a pedestrian, your TPL insurance will pay for the expenses of the victim. But if you accidentally hit your caretaker, your TPL will not cover your caretaker’s medical expenses, unfortunately.

But what about the passengers inside the car? Luckily, the Insurance Code also defined the term passenger in the same section.

“Passenger is any fare paying person being transported and conveyed in and by a motor vehicle for transportation of passengers for compensation, including persons expressly authorized by law or by the vehicle’s operator or his agents to ride without fare.”

This definition can have a lot of implications. Let’s go through some of the usual types of passengers together with their respective TPL coverage.

Who are Not Covered by TPL?

  • Family and close relatives
  • Employee passengers working under you
  • Passengers of public transportation
  • Passengers of service vehicles (delivery services, cable providers, etc.)

Who are Covered by TPL?

  • Friends and acquaintance passengers
  • Coworker passengers
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What Does TPL Insurance Cover?

Your TPL insurance coverage covers the medical or funeral expenses of the third party involved in an accident. CTPL assures that the victim and his or her immediate will receive financial assistance of up to PHP 100,000.

  • If an accident leads to the death of a third party, the third party’s immediate family will receive PHP 70,000 for death indemnity and PHP 30,000 for the funeral expenses. A third party-passenger can also get the same amount.
  • If an accident leads to the injury of a third party, the third party can avail medical services not exceeding PHP 100,000. CTPL insurance can cover hospital accommodations of PHP 500 per day maximum of 45 days. For medicine, the victim has up to PHP 20,000.
  • If an accident leads to the permanent dismemberment of a third party, your TPL coverage will cover PHP 50,000. This includes the loss of limbs, hands, fingers, toes, and feet, as well as the loss of sight for both eyes and total disablement (being bedridden permanently).

Read more: The Benefits of Going Paperless with Moneymax

TPL Insurance vs. Comprehensive Insurance: What is the Difference?

TPL insurance - third party liability insurance vs comprehensive insurance

TPL insurance is mandatory in the Philippines. And it only covers you from liability if you get into an accident that will injure or kill a third party. Because it’s the most basic and least expensive type of cover, it doesn’t cover your own bodily injuries or vehicle damage.

Comprehensive car insurance, on the other hand, is not required by law. But it offers a wider insurance coverage not just for you but for your passengers as well. Some of these include own damage, theft, passenger personal accident, acts of God, roadside assistance, and towing coverage.

How and Where to Get TPL Insurance in the Philippines

1. Prepare the following CTPL insurance documents.

  • Original vehicle receipt
  • Certificate of Registration of your vehicle
  • Your driver’s license
  • Another valid government ID
  • Photocopies of each document

2. Choose an LTO-accredited TPL insurance provider and buy your TPL policy from them.

3. Upon purchase, you’ll receive a policy with conditions together with a Certificate of Cover or COC. Don’t forget to make copies of every document you will receive.

4. Bring these documents to the LTO upon registration to prove that your vehicle has TPL car insurance or TPL motorcycle insurance coverage (if you own a motorcycle).

How to Get CTPL Insurance Online?

Wondering if you can apply for a CTPL policy online? Yes, you definitely can! Various insurance providers, including MAPFRE Insurance, Allied Bankers, and Paramount Life and General Insurance offer CTPL online.

As for the process, you’ll need to accomplish a registration form on their website and pay the premium using your credit or debit card. You’ll then receive your policy and Certification of Cover (COC) through the email address provided.

The Certificate of Cover contains details like the name of the assured, plate number of the vehicle, color, chassis number, and the insurer’s limit of liability.

How Much is TPL Insurance in the Philippines?

Unlike comprehensive car insurance that can go as high as PHP 15,000, TPL insurance is relatively cheaper and has a fixed rate. It can go from PHP 650 to PHP 1,000 depending on the type of vehicle you have. The Insurance Commission (IC) regulates TPL insurance prices for all insurance companies to ensure that car owners nationwide can afford to insure their vehicles. Here are the IC-prescribed annual TPL prices in the Philippines.

Vehicle TypeCTPL Insurance Price
Private VehiclesPHP 650.40
Light and Medium Trucks (not exceeding 3,930 kg.)PHP 700.40
Heavy Trucks (more than 3,930 k.g.)PHP 1,290.40
MotorcyclesPHP 340.40


How to File a Claim for TPL Insurance in the Philippines

If the inevitable happens, it’s always best to stay calm. You have to gather all the important details of the incident before you can file your claim. Contact your car insurance provider immediately and report the damage or loss by providing the following information. The car insurance companies will walk you through the next steps regarding your insurance claim.

  • Date and time of the incident
  • Your contact details
  • Policyholder’s name
  • Policy number
  • Nature of claim

What are the Requirements for Filing a CTPL Claim?

TPL insurance - claim requirements

Your insurance provider will require you to present certain documents to process your TPL insurance claim. Here are the basic requirements you need to secure.

  • Police report – must contain a detailed account of the incident and who is at fault.
  • Accomplished insurance claim form – fill out an online form from the insurer’s website or head to their office to complete the form in person.
  • Photocopy of driver’s license with official receipt (OR)
  • Photocopy of certificate of vehicle registration with MVRR number

Aside from the basic documents, you also need to prepare documents depending on the nature of the accident.

Requirements for Third-Party Bodily Injury Cclaim

  • Valid ID (if the third party is of legal age)
  • Birth certificate (if the third party is a minor)
  • Original copy of Medical Certificate and medical receipts with prescription
  • Income tax return (in case of loss of income)

Requirements for Third-Party Death Claim:

  • Valid ID of heirs or claimants (photocopy)
  • Birth certificate (photocopy)
  • Marriage certificate (if applicable)
  • Certified true copy of death certificate
  • Certified true copy of funeral bills or receipts
  • Income tax return (in case of loss of income)

Read more: How to File a Car Insurance Claim: Complete Guide for Policyholders

Final Thoughts

So does that mean TPL insurance is enough to protect you out on the road? Sadly, TPL is too limited in terms of coverage. It only covers the third party or the one you hit. It doesn’t cover you, the damage of your car, and even the car and property damage to the third party. And TPL has a limited budget of PHP 100,000. You’ll have to shoulder any amount exceeding that limit, so you’d better hope you don’t get into a terrible accident.

But what if something happened to your car? What if your car got wrecked by another car? What if an earthquake splits your car into two? You need an insurance policy that will protect you and your investment. And hey, since you already have a basic car insurance, it won’t hurt to get a more comprehensive one. Find out how by getting a free quote for your car below.

Get a Free Car Insurance Quote!

Looking for a better coverage than CTPL? Below is a list of top car insurance companies and their features. Compare your options and get a free quote from Moneymax!

Car Insurance CompanyFeatures
MAPFRE Insular

Get Free Quote
  • 10 years of casa eligibility
  • 366 accredited repair shops
  • PHP 5,000,000 maximum total sum insured
  • Overnight accommodation - Yes, up to PHP 3,000
  • Towing - Yes, up to PHP 5,000
  • Vehicle removal crane services - Yes, up to PHP 10,000
Malayan Insurance

Get Free Quote
  • 3 years of casa eligibility
  • 58 casa repair shops
  • PHP 7,500,000 maximum total sum insured
  • Overnight accommodation - Yes, up to PHP 1,000
  • Towing - Yes, up to PHP 4,000
  • Vehicle removal crane services - Yes, up to PHP 8,000
New India Assurance

Get Free Quote
  • 10 years of casa eligibility
  • 30 accredited repair shops
  • PHP 3,500,000 maximum total sum insured
  • Overnight accommodation - Yes, up to PHP 1,500
  • Towing - Yes, up to PHP 4,000
  • Vehicle removal crane services - Yes, up to PHP 10,000
Prudential Guarantee

Get Free Quote
  • 10 years of casa eligibility
  • PHP 3,000,000 maximum total sum insured
  • Overnight accommodation - Yes, up to PHP 2,000
  • Towing - Yes, up to PHP 5,500
  • Vehicle removal crane services - Yes, up to PHP 15,000
SGI Philippines

Get Free Quote
  • 5 years of casa eligibility
  • 36 accredited repair shops
  • PHP 5,000,000 maximum total sum insured
  • Overnight accommodation - Yes, up to PHP 2,000
  • Towing amount - Yes, up to PHP 5,000
  • Vehicle removal crane services - PHP 10,000
Stronghold Insurance

Get Free Quote
  • 10 years of casa eligibility
  • 167 accredited repair shops
  • PHP 3,000,000 maximum total sum insured
The Mercantile Insurance Corporation

Get Free Quote
  • 10 years of casa eligibility
  • 77 accredited repair shops
  • PHP 5,000,000 maximum total sum insured
  • Overnight accommodation - Yes, up to PHP 2,000
  • Towing - Yes, up to PHP 5,000
  • Vehicle removal crane services - Yes, up to PHP 10,000