ARTICLE

It’s that time of the year where car owners gather and bring with them their four-wheeled prized possession. No, we aren’t talking about a transport show.

This is the annual registration of vehicles as mandated by the Land Transportation Office (LTO), where automobile owners line up for a couple of hours, maybe even more, for the whole process. New vehicles acquired from authorized distributors are exempted from the registration for the next three years from the date of purchase. But for the uninitiated, it can be confusing and time-consuming. Did we mention emission testing and third-party liability insurance are requirements as well?

So what is compulsory third-party liability insurance (CTPL), also commonly called TPL? As the name suggests, its the basic insurance required by LTO designed with the public’s interest in mind. Imagine if the cars plying our streets are in no way obligated to unsuspecting pedestrians they hit or run over. Chaos, we know. The CTPL takes care of that.

We’ve mentioned the term “third-party” twice now and you’re probably wondering who we are referring to. Let’s start with the first-party. It pertains to the driver, and the driver only, of the vehicle. The passenger(s), if any, inside the car is considered the second-party. This now brings us to the third-party concerned. They are the people located outside of a vehicle.

In contrast with the CTPL is comprehensive car insurance. Expensive and not required by law, but this type of insurance offers a wider coverage involving the driver and the passenger(s). Included also are own damage, theft, acts of nature, roadside, and towing assistance.

Given what has been mentioned about the CTPL, not a lot of advantages can be attributed to it except that it’s the most affordable and the ₱100,000.00 limitation is on a per accident basis. But keep in mind a few things as well. For starters, there is a schedule of indemnities for the mentioned amount. Meaning, depending on bodily injuries sustained, permanent disablement occurred, and even loss of life, the whole sum is not given outright. Second, it’s a shared limitation. If there are 2 or more persons classified as belonging to the third party, the ₱100,000.00 will be appropriately distributed. Third, the party at fault will only be compensated through reimbursement. And lastly, it only covers body injuries, and in some cases, property damage to a certain degree. Any costs over the limitation will come out from the first party found to be at fault. Comprehensive insurance still offers the best. Here, the popular saying applies, “It is better to have it and not need it than to not have it but need it.”

Of course, this doesn’t mean just because it’s the cheapest, any insurance company you come across will do. Several fly-by-night companies are offering third-party liability insurance. Sure, it may help you expedite the registration process. But in doing so, you are at risk of adding more to your worries especially in the financial aspect in the eventuality of a vehicle mishap.

Good news! We at Diamond Circle Insurance Agency, a trustworthy and reliable insurance broker, can issue your CTPL at our office with no extra charge. We charge cheaper compared to those located around LTO branches. Plus, a further rate discount can be given if you avail your comprehensive insurance with us.

To know more about CTPL and how we can assist you and your company, contact us at +632 7-959-50-20 or hello@diamondcircleinsurance.com. You can also check our other services by clicking this link.