Passenger Coverage: What's included in your car insurance?

Are passengers covered under a car insurance policy?

Before answering that question, we’d like to discuss who qualifies as a ‘Passenger’. Now, a passenger is someone who isn’t the driver and is inside the car. It can be a family member, friend, coworker, hired help, or a paying or non-paying passenger.

Coming back to the question, the answer is generally a ‘YES’. The reason why we say so is that it all depends on the type of insurance policy you have signed up for.

When it comes to car insurance in the Philippines, there are two major types of coverage available: Compulsory Third-Party Liability (CTPL) and Comprehensive Insurance. Let's discuss the two in detail.

CTPL vs. Comprehensive Insurance

Compulsory Third-Party Liability (CTPL) insurance is mandatory in the Philippines; all motor vehicle owners are required to have it to register their vehicles for coverage, CTPL offers limited protection, which applies only to third parties, i.e., anyone other than the policyholder (first party), the insurance company (second party), or individuals affected by an incident (but not those riding in the insured vehicle).

Comprehensive car insurance is highly recommended coverage for all policyholders due to its broader protection, including passenger accident coverage. If your policy includes Personal Accident Insurance (PAI), then the passengers are covered against medical expenses (from an accident) and will get disability and accidental death benefits. With PAI, passengers will receive financial support in the event of an unexpected accident.

The bottom line is that CTPL will not provide financial protection for your passengers in the event of an accident. Therefore, it is essential to update the policy accordingly to ensure the economic security of passengers.

CTPL Car Insurance - What does it cover & what it doesn't?

If you are wondering what CTPL insurance covers or if you are questioning its usability beyond LTO vehicle registration, this bit is for you. CTPL insurance covers third-party bodily injuries and death. Here’s a detailed look at the inclusions -

• Bodily injury - This coverage includes injuries to a third party caused by an accident involving the insured vehicle. It will cover medical expenses, including medication costs, hospital bills, and related fees.
• Death - If the accident results in the death of a third party, CTPL offers financial compensation to the victim’s family, which will cover funeral expenses and provide monetary relief.
• Legal liabilities - CTPL insurance covers all legal liabilities in the event of injury or death of a third party in a road accident.

What does it not cover?

• Damage to the insured vehicle in the event of an accident.
• No protection is afforded to the vehicle owner or passengers.
• In the event of severe accidents, CTPL may not fully cover medical expenses or compensation to third parties.
  CTPL does not cover losses resulting from vehicle theft, vandalism, or fire.

Comprehensive car insurance & passenger coverage

As stated, comprehensive insurance provides broader protection to the insurer. However, when an add-on like Passenger Personal Accident Coverage is included in the plan, it offers benefits such as medical bill reimbursement, accidental death benefits, and hospitalisation allowance to all passengers.

The passenger got injured - What to do?

Driver’s take

As a driver, you are responsible for the well-being of the passengers. Therefore, if a passenger inside your car gets injured, here’s what you should do as a driver -

• Ensure immediate medical help for the injured person.
• If needed, report the incident to the police.
• Call the insurance agent or the provider’s hotline to report the matter.
• Gather all the required documents, such as the incident report, pictures, and medical receipt.
• Cooperate with the insurance adjuster in the investigation.
• Wait for the insurer's response to the claim.

Passenger’s take

If you, a passenger, got injured in a car accident, here are the initial steps to follow -

• Reach out for medical help as soon as possible.
• Gather photos of the incident, injury, and witness statement (whatever is possible).
• File a claim with the driver’s insurance provider.
• If possible, get a police report.
• In the event of significant injuries, consider consulting a lawyer.

How to file a claim as a passenger - Step-by-step guide

Step 1: Collect as much information as you can

After regaining your senses and receiving the appropriate medication, try to collect as much information as possible about the incident—for instance, insurance details (including the names of the involved drivers), contact details, and the accident report.

Step 2: File a claim with the required documents

File a claim under Passenger Personal Accident Coverage with the vehicle owner’s insurer. Support your claim with documents like a police report, medical report, hospital bills, and photos of the incident.

Step 3: Follow up with the insurer

Make sure to be in touch with the insurance agent or an authorised person to get updates about your claim.

Common myths about passenger insurance coverage

Myth 1: CTPL covers everyone.
Reality: No, it does not; it only deals with third parties, not the insured vehicle owner or passengers.

Myth 2: Comprehensive insurance is not required.
Reality: Comprehensive insurance is optional; however, it is highly recommended and a must for passenger coverage.

Myth 3: Only drivers can file a claim.
Reality: Passengers can also file a claim.

Myth 4: Claims are always approved.
Reality: Not necessary, denials happen.

Myth 5: All car insurance policies are the same.
Reality: No, each policy is different with its terms and conditions.

Bottom line

Road accidents are a common occurrence worldwide, and the Philippines is no exception, particularly given its challenging road conditions and unpredictable drivers. Such situations make having car insurance all the more essential, especially given its ability to protect everyone in the vehicle, not just the driver.

In this article, we have focused on the importance of passenger coverage and how it’s more than just another insurance checkbox. Believe us, it is no less than a lifeline for your family, friends, or anyone accompanying you in the car.

If you are in the process of getting your new car insured or renewing your policy, be sure to add passenger protection coverage.

FAQs

Q1. What things shall I keep in mind while getting car insurance with passenger coverage?
Ans. Ensure you have comprehensive insurance with passenger personal accident coverage. Furthermore, look for an insurer and policy that offer a quick claim process, legal assistance, and medical reimbursement services.

Q2. Does CTPL insurance cover passengers?
Ans. No, CTPL insurance only offers financial protection to third parties outside the vehicle. Passengers are usually not considered third parties.

Q3. Are passengers permitted to file a claim directly with the insurance company?
Ans. Yes, passengers can file a claim directly, even without the driver's presence. All they need is proper documentation,, including police and medical reports, and insurance details.

Q4. My carpool companion got injured in my car. Can I file a claim?
Ans. Yes, they can file a claim with your insurance provider, given that your policy includes passenger personal accident coverage.

Q5. How many passengers are covered under a typical car insurance policy with PA?
Ans. It depends on the insurance provider and your plan. Some policies offer coverage for up to five passengers, while others may cover more, depending on the policy terms.

Q6. Is passenger coverage a part of a standard insurance policy in the Philippines?
Ans. No. Passenger coverage is usually an add-on benefit.

Q7. What documents are required by a passenger to file a claim?
Ans. The passenger would need the following: a copy of the police report, a medical certificate, etc.

Also Read: Breaking down personal accident coverage in Philippine car insurance