Car owners with comprehensive insurance are not required to purchase compulsory third-party liability (CTPL) insurance coverage when registering with the Land Transportation Office (LTO).
Comprehensive insurance already includes CTPL coverage, fulfilling the mandatory prerequisite for car registration or renewal.
There are two types of car insurance in the market: mandatory CTPL, optional comprehensive coverage.
The insurance regulatory chief acknowledged challenges in implementing the mandatory car insurance requirement.
A meeting has been scheduled with the LTO to educate them on proper assessment, payment, and rates for basic car insurance policies.
The insurance commission will review terminologies used for car insurance options, particularly the term "comprehensive" in relation to CTPL.
Car owners with comprehensive insurance should not be charged for or required to obtain a new CTPL when they already have existing coverage.
CTPL optional for car registration—Insurance chief
At a glance
Car owners with comprehensive insurance for their motor vehicles are not required to buy compulsory third-party liability (CTPL) coverage when registering with the Land Transportation Office (LTO).
Insurance Commissioner Reynaldo A. Regalado said comprehensive insurance coverage should meet the mandatory requirement for car registration or renewal with the LTO, as it already includes the mandated CTPL.
Regalado further explained that the law mandates only CTPL coverage, thus additional third party liability coverages, should be considered optional for car owners.
“When the LTO assessor observes that the car owner has a comprehensive insurance policy, they should not be obligated to purchase CTPL,” Regalado said during a Senate hearing on Monday, Oct. 2.
There are two types of car insurance in the market, Regalado pointed out, noting that CTPL is mandatory, while the comprehensive coverage is optional.
Regalado's clarification was prompted by Senator Rafael T. Tulfo's personal experience, in which he was asked by the LTO to purchase additional CTPL coverage despite already having comprehensive insurance for his vehicles.
The insurance regulatory chief admitted to facing difficulties in implementing the basic car insurance requirement for car owners.
“If they are doing the right thing, he should not be charged with TPL,” Regalado said. “The problem is on the [LTO frontline] line.”
To address the concern, Regalado said that a meeting has been arranged with the LTO to provide guidance on proper assessment, payment, and rates for basic car insurance policies.
“There are three types of insurance for motor vehicles, and I think that's where people get confused,” Regalado said.
He added that the insurance commission will review the terminologies used for the three car insurance options, particularly the use of the term "comprehensive" in relation to CTPL.
"We need to revise the terms because that is how motorists commonly understand CTPL to cover all other aspects, including acts of God," explained Regalado.
"In any case, if you already have it [comprehensive insurance policy], you should not be charged for or required to get a new CTPL," he concluded.