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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.
Not sure what you need? Learn in seconds which types of insurance match your business.
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
Information Needed for Quotation or Policy Issuance
Registered Owner
Mailing Address
Detailed description of the vehicle
Accessories
