Car insurance claims in the Philippines: Common scenarios and claim types explained

You have done all the hard work from selecting, financing, to purchasing a car, which was followed by your efforts for acquiring the OR/CR, driver’s license, and insurance policy for your car. Now that all is set and done, you just need to make timely premium payments (which can be done in multiple ways, discussed here) and drive around freely, with complete peace of mind.

One of the biggest perks of getting an insurance policy for your car, including CTPL and comprehensive coverage, is the freedom to drive with no worries. You know that the insurance provider will support you financially when the need arises.

But it is also true that when an incident like an accident or collision occurs, the driver/owner is often left confused about certain things, like whom to contact, whether to contact police or not, how to proceed with the claim process, what evidence or pictures to collect, etc.

While we have covered most of these concepts in our previous blogs titled ‘How to file a car insurance claim in the Philippines (and get approved faster)’ and ‘What to do after a car accident: A guide for insured drivers’. Here, we’ll be focusing on other essential stuff like common claim types, situations that require you to file a claim, and more, to ensure a smooth claim process.

So, without any delay, let’s begin.

Decoding the car insurance landscape in the Philippines

We know that you have got your car insured, and you pretty much understand the basics. However, when it comes to types of claims and scenarios that require you to file a claim, it is a good idea to brush up on your lessons.

Role of Insurance Commission

The Insurance Commission, popularly known as the IC, regulates and oversees the overall working of the car insurance landscape in the country. The body also makes sure that each insurance provider is working within the set legal boundaries.

So, as a policyholder, you must approach only those providers that are authorised by the IC. This way, you will get to enjoy optimum coverage, protection of your rights as a customer, and operation under the set industry standards.

CTPL & comprehensive coverage

So, the Philippine car insurance market has in stock a range of products on offer, including compulsory and comprehensive insurance options. Together, the two offer adequate coverage to the vehicle owner. Here’s a brief about the two -

CTPL insurance - It is mandatory for all vehicle owners in the Philippines. It provides coverage for third-party bodily injury or death resulting from vehicular accidents. Furthermore, CTPL is a fundamental requirement for vehicle registration.

Comprehensive insurance - This one covers a broader range of risks, including damage to the insured vehicle, theft, and acts of nature. Standard coverage provided by comprehensive car insurance includes - own damage coverage, third-party liability coverage, personal accident coverage for the driver and passengers and acts of nature coverage.

Insurance premium calculation

When talking about the basics of insurance, the premium calculation can not go unnoticed. Several factors contribute to a policy's cost, including the vehicle’s make and model, age, condition, driver’s age & driving history, etc. The table will give a brief about how these factors impact the premium; the information will come in handy at the time of policy renewal or change of insurer.

Factor	Impact on premium
Car’s make & model	Luxury vehicle - High premium due to increased repair or replacement costs
Driver’s history	Previous claims/violations - High premium due to increased risk
Driver’s age	Young driver - High premium due to increased risk of accident
Coverage limit	More coverage - High premium for increased protection

Car insurance claim - Understanding the basics

If you are a policyholder, then you must have a proper understanding of a car insurance claim. Only then will you be able to recover from financial losses due to accidents or other damages.

Here are a few pointers about insurance claims you must remember -

Make sure your claim is valid. An insurance claim is tagged valid when it fulfils the conditions and criteria of the policy. This happens in two ways: first, the claim you made must be covered under your policy; second, it must be supported by necessary documents like a police report, pictures of the damage/accident scene, and repair estimates.
Make sure to report the incident on time, i.e., as specified by the insurer. Remember, late reporting can lead to consequences like denial of the claim.

Photo from Freepik

Common situations that require filing a car insurance claim

A car insurance claim can be made by a policyholder for several reasons, like a natural calamity that hits their area/city or accident scenarios which they encounter daily. A proper understanding of their situation will help you remain more cautious and save them from a delay in filing for a claim.

Traffic collision

Cities with heavy traffic, like Metro Manila, are known for congested roads, which increases the likelihood of collision, reckless driving, failure to follow traffic rules, and tailgating. Drivers should therefore be extra careful in such areas.

Accidents

Road challenges such as poor road conditions, inadequate lighting, and speeding often lead to road accidents. Drivers are required to be aware of the risks and drive accordingly, else their car will sustain damage. In such cases, you should tap into your car insurance policy without wasting any time.

Parking-related incidents

Parking is a challenge, especially in urban areas where mirror collision or damage to/from other vehicles is a common occurrence. We’d suggest you stay calm when parking your car.

Damage due to a natural disaster

The Philippines is prone to natural disasters like floods and typhoons, which can cause significant damage to vehicles.

Here, we’d suggest drivers be cautious when driving through flooded areas and understand their insurance coverage (get comprehensive coverage for such cases).

Damage caused by men

Events such as riots, vandalism, or other malicious acts might damage the car. In such cases, the driver can file a claim.

Events leading to total loss

In cases where your car gets damaged beyond repair is considered a total loss (repair cost is higher than the car’s current value). Here, also a policyholder can file a claim; however, the policy shall provide such coverage.

Damage to property

There are cases where the third party in an accident is not a living but a non-living thing, like a property or another car. In such cases, the policyholder can file a claim to cover the cost of repair and avoid legal matters.

Third-party death or injury

If your car is involved in an accident leading to another person’s death or injury, it’s time to file a claim and get help.

Photo from Shutterstock

Types of car insurance claims you can file

Do you want to enjoy financial protection in times of distress, like the situations mentioned above? If yes, then you must understand the different types of claims that can be filed for financial protection. Of course, it will depend on your policy's inclusions; therefore, it’s better to read along, identify the missing coverage you need and file the appropriate claim as per requirement.

The table below gives you information about different types of claims and the coverage they provide.

Type of claim	Coverage offered
Own Damage	It covers damages to your vehicle due to an accident or collision, regardless of who is at fault. It will take care of all the vehicle repair costs.
Third-Party Liability	It covers damages or injuries to others in an accident caused by your car.
RSMD (Riot, Strike, Malicious Damage, & Civil Disturbance)	It covers damages to the vehicle due to vandalism or any malicious act.
Third-Party Property Damage	It covers damages caused to third-party property, like their car or house, while you're driving your vehicle.
Towing Coverage	This claim allows you to request reimbursement, in case you have availed tow service and paid for it from your pocket.
Theft	This coverage allows you to claim fair market value for your car in case of theft or loss of parts.
Excess Bodily Injury	This coverage pays for third-party medical expenses exceeding the PHP 100k limit under CTPL insurance.
Acts of God/Nature	This coverage can be filed if your vehicle gets damaged due to flood, typhoon, volcanic eruption, or earthquake.

Filing a claim - Common challenges and how to overcome them

Claim denial

It is one of the most common challenges faced by a Filipino policyholder. Lack of coverage, late reporting, or insufficient documentation are among some of the reasons for claim denial. To overcome this issue, make sure to understand your policy thoroughly and report that as soon as possible after the incident.

Insufficient coverage

When a policyholder faces the issue of insufficient coverage, he/she often end up paying for the expenses out of their pocket. You can save from ending up in such a situation by reviewing your policy limits and getting additional coverage as required.

Disputes with the insurance provider

Matters involving claim settlement and coverage often lead to disputes with the insurance provider. Such matters can be taken care of either by approaching the Insurance Commission or by taking legal action.

Bottom line

Navigating the car insurance claim process in the Philippines is a bit complex; however, things get better if the policyholder understands the process and knows the scenarios that require them to file a claim. In this article, we have discussed the basics of insurance, different types of claims that can be filed (own damage, third-party liability, theft, and acts of nature), and the scenarios that require claim filing. So, take in all the information and be prepared whenever the need arises.

FAQs

Q1.) What is the first step in filing a car insurance claim?
Ans. The first step in filing a car insurance claim is to notify the insurance provider soon after the incident.

Q2.) I live in Metro Manila. What car insurance coverage shall I include in my policy?
Ans. Urban vehicle owners are recommended to include their own damage coverage, as it covers damages due to collision and accident.

Q3.) What shall I do to ensure quick claim settlement?
Ans. Make sure to provide all the required documents, like police report, repair estimates, and photo evidence.

Q4.)My car got damaged in a flood? Can I file a claim for this damage?
Ans. Yes, you can file a claim for damages caused by natural disasters like typhoons or floods, under Acts of Nature coverage.

Q5.) What is the role of the Insurance Commission in the Philippines' insurance arena?
Ans. The IC regulates the insurance industry in the country. It ensures that insurance companies comply with the rules and regulations governing car insurance claims.

Q6.) My car insurance claim got denied. Can I dispute?
Ans. Yes, you can dispute a denied claim. You can do so by filing a complaint with the Insurance Commission or seeking assistance from a legal professional.