Motor Car Insurance
This is an insurance for all types of vehicles such as sedan, SUVs, mini vans, trucks etc. Covers you against loss, damage and/or liability resulting from accidents arising from the ownership and operation of your motor vehicle.
What is Motor Car Insurance?
This is a type of non life insurance for all types of motor vehicles. It is a protection against loss, damage or liability by the insured resulting from accidents caused by the ownership and operation of his motor vehicle.
Motor Vehicle
This refers to a self-propelled vehicle by any power except muscular power, commonly wheeled, that does not operate on rails and (such as trains) and is used for the transportation of people or cargo from one place to another.
It also uses the public highways, and public thoroughfare, public boulevard, avenue, park alleys.
Authorized Driver
This may refer to the insured or vehicle owner, any person driving on the insured’s order or with permission. He must also be permitted in accordance with the licensing law or other regulation to drive and must not be disqualified by order of the court or regulations.
Third Party
Any person is a third party except for the following: i. passenger ii. household member iii. family up to 2nd degree of consanguinity or affinity iv. employee of the vehicle owner.
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Types of Motor Car
Micro
Sedan
CUV
SUV
Hatchback
Roadster
Pickup
Van
Coupe
Supercar
Campervan
Mini Truck
Cabriolet
Minivan
Truck
Private Car
Examples are sedan, corolla, civic, hatchback
Commercial Vehicle
Most common types of this are pick-up, vans, trucks
Motorcycle
A two-wheeled vehicle used for social, domestic, and pleasure purposes
Land Transportation Operators
These are the vehicles on yellow plate, used to transprt passengers for a fee or compensation
Two Kinds of Motor Car Insurance
Compulsory Coverage
Compulsory Third Party Liability (CTPL)
This is an insurance protection from liability for death or bodily injury of third parties caused by the insured vehicle accidentally resulting from fault or negligence of the owner or any authorized driver.
CTPL Insurance is also a required insurance coverage of all vehicles and is mandated by the Land Transportation Office as one of the requirements for vehicle registration.
Voluntary Coverage
- Extended Third Party Liability – Bodily Injury (ETPL-BI)
- This provides the same benefit with CTPL except that it only covers the excess of your CTPL coverage
- Extended Third Party Liability – Property Damage
- This protects the assured from any third party liability he might incur for damage to the property of others while using his vehicle
- Loss or Own Damage
- Pays for loss or damage to the insured’s vehicle due to accident
Deductible
This is the amount the owner of the vehicle pays for the repair of his vehicle out of his own pocket. Some call it participation but technically deductible is an amount you pay before your vehicle’s repair.
Here are the standard deductibles:
- Private car – 0.5% of sum insured/value, minimum of 2,000 php
- Commercial Vehicle – 1.0% of sum insured/value, minimum of 3,000 php
- Motorcycle – 1.0% of sum insured/value, minimum of 500 php
Extensions of Basic Cover
- Acts of Nature Perils
- Flood, Typhoon, Hurricane, Volcanic Eruption and earthquake
- Riot, Strike and Civil Commotion
- Auto Passenger Personal Accident