Motorcycles are a crucial part of the Philippines' transportation system - people use them for both personal and commercial use, all due to their ease of use, which their four-wheeled sibling (the car) isn’t able to offer. Motorcycles are easy to park and navigate around in traffic, which is why they are the first choice of delivery riders.
Day by day, delivery riders are becoming a crucial part of our lives. From food (GrabFood & Foodpanada), groceries (Metromart), to packages (Lalamove and Tok Tok), riders ensure all your needs get fulfilled in the minimum time.
But there’s a bad side to this as well, which comes in the form of delivery riders fighting the traffic, parking at unauthorised locations, and riding even when they are tired. This calls for motorcycle insurance, which is a legal formality but also offers a financial safety net to the rider.
This article is dedicated to delivery riders of the country and their protection via insurance. Here we’ll be discussing meaning, cost, benefits and more about delivering rider insurance. So, without any delay, let’s begin.
Motorcycle insurance for delivery riders - Why it’s crucial
The role of delivery riders in the Philippines has increased manifold in the past few years, especially since the COVID-19 pandemic, when they kept the economy moving. This industry is booming, and many Filipinos are a part of it, making it a source of their primary or secondary income.
However, this work has its own set of challenges, as it is a high-risk job. The riders are at risk of getting involved in an accident, as they deal with work factors like traffic, unpredictable weather, and strict delivery timelines.
Therefore, if not anything else, motorcycle insurance becomes a must for these riders who are playing a key role in the economy while doing high-risk work.
Also Read: What is motorcycle insurance, and why do Filipinos need it
Motorcycle insurance for delivery riders - What does it imply
Like any other motor vehicle insurance policy, motorcycle insurance for delivery riders is meant to safeguard the financial interests of Filipino delivery personnel while on duty, handling parcels. Or anyone who is using their motorcycle for commercial purposes.
These insurance policies typically cover damage to the motorcycle & third-party due to an accident, medical expenses in case of injury, theft or total loss of the bike, and delivery gears (if included in the policy).
Note that a standard motorcycle insurance policy does not cover vehicles used for commercial purposes. Riders are required to declare the nature of their usage; otherwise, the claim would be rejected.
Image from FreepikTypes of motorcycle insurance available for riders
Insurance providers in the Philippines offer delivery riders various plans - ranging from the basic CTPL to highly-recommended comprehensive insurance. Let us discuss these options in detail -
Compulsory Third Party Liability (CTPL) Insurance: CTPL insurance is a legal requirement that every rider must fulfil. As for coverage, it offers protection against third-party injury/death.
Comprehensive Insurance: Moving one step ahead in the insurance journey, comprehensive policies offer wide coverage to the rider. It provides financial protection against fire, theft, flood, damage due to accidents/collisions, vandalism, etc.
Personal Accident Coverage: Primarily offered as an add-on, Personal Accident coverage compensates the rider for injury, disability, or death resulting from an accident, regardless of who is at fault.
Additional protection (accessories & gear protection): Some insurers also offer add-on coverage against helmets, jackets, gloves, or any device installed on the vehicle. Further, there’s also personal belongings protection that protects your belongings from damage or loss in case of theft, collision, or fire.
Also Read: How to choose the best motorcycle insurance in the Philippines
Cost of motorcycle insurance
Before discussing the cost of motorcycle insurance in the Philippines, it is essential to learn about the key factors that influence the premium. The list includes -
- Motorcycle’s price, model, and year
- Rider’s age, location, and driving & claim history
- Coverage type
- Usage type - commercial or private
Regarding insurance costs, depending on the factors mentioned above, insurance providers will evaluate your policy’s premium. For CTPL, this could range from PHP 300 to PHP 700 annually, while a comprehensive plan may cost between PHP 4,000 and PHP 12,000 per year.
Advantages of insuring your delivery motorcycle
Here are some of the benefits of motorcycle insurance for delivery riders -
Advantage 1: Financial safety against accidents
Motorcycles can be expensive to repair; the situation becomes more severe if you are already trying to make ends meet. Here, insurance saves you from this unplanned expense by covering the repair cost.
Advantage 2: Protection against theft or total loss
One of the most common target motor vehicles for thieves is two-wheelers; therefore, it becomes essential to get insurance. At least you’ll get compensated for the loss.
Advantage 3: Peace of mind while on the go
Knowing that you have financial protection enables you to drive in peace, and you can concentrate on the deliveries.
Advantage 4: Medical and hospital expenses coverage
If you get injured while on your delivery duty, the insurance firm will take charge of medical and hospital bills.
Consequences of not insuring your delivery motorcycle
In case you decide not to get insurance, here's what you’ll be facing -
Consequence 1: Legal fines and penalties
Every vehicle owner in the country is required to get CTPL insurance, if not anything else. Riding without it can result in fines and registration issues.
Consequence 2: Financial loss
In case of an accident and no insurance policy to back you, the entire load of repair, medical, and third-party claim expenses will fall on your shoulders.
Consequence 3: Loss of income
If your bike, which you use for delivery, gets damaged or stolen, you’ll lose out on days or even weeks of earnings.
Common insurance concerns of delivery riders
Here are a few of the common insurance-related challenges and concerns delivery riders face -
Delay in claim processing - Often, riders complain about delays in insurance claim payout, which causes them financial stress, as they are already on a tight budget.
High premium & low income - Many delivery riders cannot afford comprehensive insurance due to high premium rates.
Image from FreepikTips for delivery riders while purchasing motorcycle insurance
- Make sure to compare multiple providers, not just in terms of premium, but coverage and exclusions as well.
- Understand what exactly your policy covers and what it excludes; don’t shy away from asking questions.
- If possible, look for insurance with rider-specific insurance options, as they come with added benefits.
- Look out for flexible payment plans (monthly instalments) as they are easy to manage.
Tips to reduce motorcycle insurance costs
- Install anti-theft devices on your vehicle, and you will get a discount on the premium.
- Be a good rider, and make sure to follow traffic rules.
- Bundle your insurance policies, like life, health, etc.
Bottom line
Remember that accidents, theft, or damage via typhoons can happen anytime, anywhere. These dangers are out of your control and can severely harm your beloved motorcycle that you use for commercial purposes. While motorcycle insurance is a legal necessity for all Filipinos, it is all the more essential for delivery riders, who ride all day through traffic, all tired.
Mark our words, motorcycle insurance is entirely worth it if your livelihood depends on it. Now it is up to you how much coverage you want - the low-cost basic CTPL coverage or slightly expensive but comprehensive coverage with huge benefits.
FAQs
Q1. Is CTPL insurance enough for motorcycle delivery riders?
Ans. While CTPL insurance is mandatory, it is insufficient, as it does not provide coverage for the insured vehicle or the rider.
Q2. Is a motorcycle comprehensive insurance plan expensive?
Ans. Compared to CTPL, comprehensive insurance is slightly more expensive. However, the price depends on the vehicle’s cost, coverage, driver’s age, location, and other factors.
Q3. I am a part-time rider. Can I get insurance?
Ans. Yes, you can. However, the policy options vary as per the insurer.
Q4. How can I lower my insurance premium?
Ans. Here are a few tips to lower your premium: maintain a clean record, add security devices in your vehicle, bundle policies, take defensive driving courses, compare insurance providers, increase your deductibles, and take advantage of promos.
Q5. I am a delivery rider. Will my insurance policy cover work-related accidents?
Ans. Yes, but only if your motorcycle insurance policy includes commercial vehicle usage.
Q6. What are the consequences of not having insurance?
Ans. Not having insurance has severe consequences, including paying the upfront cost out of pocket, facing legal charges, paying for vehicle repair, and potentially affecting your income/business (if the vehicle is used for commercial purposes).
Q7. Does motorcycle insurance cover typhoon damage?
Ans. Yes, but only if your policy includes Acts of God coverage; some insurers offer it as part of a comprehensive policy, while others offer it as an add-on.
Q8. Is it possible to cancel a motorcycle insurance policy?
Ans. Yes, most insurance providers in the Philippines allow policy cancellation; however, the terms (regarding refund and cancellation) may vary.
Q9. I am planning to sell my motorcycle. What shall I do with the insurance policy?
Ans. You have two options - either transfer the policy to the new rider or cancel the policy. Most insurers offer full assistance via their customer support team, making the process smooth.
Q10. What shall I do in case of a road accident?
Ans. In case you and your motorcycle get involved in an accident, here’s your line of action: check for injuries, notify authorities, take as many pictures as possible, and connect with the insurer for claim assistance.
Q11. Shall I insure my old motorcycle?
Ans. Yes, for sure. If it is being used for commercial purposes, we’d recommend getting personal accidental coverage.
Q12. I deliver food to my partner using a scooter. Is insurance necessary?
Ans. Absolutely. It doesn’t matter if you ride a motorcycle or scooter for delivery; insurance is a legal requirement (CTPL). Further, with insurance, you’ll get coverage against repair, medical bills, and hospital expenses. The peace of mind it brings is unmatched.
Also Read: How to get Motorcycle Insurance in the Philippines: A step-by-step guide
