Scooters, underbones, and motorcycles, including sports bikes, dual-sport models, mopeds and adventure touring bikes, are very popular in the Philippines. Filipinos use it for day-to-day commuting, as it is easy to ride through traffic and park. It is for the same reason that two-wheelers are popular among delivery drivers. Furthermore, brands like Yamaha, Honda, Suzuki, and Kawasaki are popular among the riders for their affordable prices and versatile options.
It doesn’t matter if you are a casual rider or a full-time motorcyclist; what’s important is having proper insurance. Motor vehicle insurance is both a wise and essential decision. We say so because there are broadly two types of motorcycle insurance in the Philippines: CTPL and comprehensive insurance, wherein one is necessary and opting for the other is advisable.
Both types of motorcycle insurance serve different purposes and protect the policyholder in various ways. Still, many riders make the mistake of choosing just one mandatory insurance, i.e., CTPL.
With this article, our goal is to explain why a motorcycle owner needs both CTPL and comprehensive coverage in the Philippines, and how these two types of coverage work together to ensure complete protection for you & your motorcycle.
So, let’s get started..
Understanding the basics of Motorcycle Insurance
Compulsory Third-Party Liability (CTPL) insurance - What is it?
Whenever you approach an insurance provider or an agent, the one term that you’ll hear for sure is CTPL.
Now, the CTPL insurance is required by law for all motor vehicles in the country. There is no way it can be skipped, whether it's a brand-new or used unit. Also, without this particular insurance, your motorcycle can’t get registered with the LTO (which is necessary to ride around on the public roads legally).
Coverage? The CTPL insurance covers bodily injuries and death caused to a third party (like a pedestrian or another driver) due to an accident involving the insured motorcycle. There is no protection for the policyholder and the insured unit.
Comprehensive Insurance - What is it?
Once the discussions on CTPL insurance are complete, it is time to proceed to the next step, namely, a plan that fills the gap left by CTPL - protection for the policyholder and the insured motorcycle. This is where your agent will explain comprehensive coverage to you.
Comprehensive coverage is not just optional, it's highly recommended. Here, the insurer gets financial protection against the following: motorcycle damage, theft, natural disasters, fire, and vandalism. This comprehensive coverage provides a layer of security that every rider should consider.
Overall, while CTPL ensures the motorcycle owner's legal compliance, comprehensive coverage protects their investment.
CTPL insurance: Legal necessity vs. optimum coverage
CTPL - A legal necessity
The CTPL insurance ensures that if the policyholder injures someone in an accident involving their motorcycle, the insurance provider will cover their medical bills or death benefits (up to a specified limit). This legal necessity protects policyholders from any financial burden or liability if the victim takes legal action.
Consequences for skipping CTPL
Riding a motorcycle without CTPL insurance is illegal in the Philippines. If you get caught by the authorities doing so, you may face the following consequences: fines, vehicle registration suspension, and being barred from renewing your motorcycle registration. These are serious repercussions that every rider should be aware of.
Why is CTPL alone not enough
When we say CTPL is not enough, it is not. You ask, why? Because it does not cover the following: insured motorcycle repair bills, you or your passenger’s hospital bills (in case of an accident), loss from vehicle theft, and vehicle damage due to natural disasters like earthquakes & floods.
Bottom line, CTPL alone won’t get you optimum protection; you need comprehensive insurance to get financial protection against a wide range of incidents.
Photo from FreepikComprehensive insurance: Coverage offered
With comprehensive coverage by your side, you get the following coverage -
- Vehicle damage from accident & collision - If you hit another vehicle, a post, or anything else while on the go, and your car gets damaged, comprehensive insurance will be there to help. It will cover the repairs, regardless of who is at fault.
- Vehicle theft - In urban areas, motorcycle theft is a common occurrence. If such an unfortunate incident takes place, there’s no need to worry with comprehensive insurance. The insurer will compensate you for your stolen asset.
- Vehicle damage due to natural disaster - Your motorcycle can easily get damaged during floods or in the typhoon season due to a falling tree. But there’s nothing to worry about, as comprehensive insurance will cover the damages sustained during such events.
- Vehicle damage due to vandalism, riot, or miscellaneous causes is also covered under comprehensive insurance.
How having both coverages is advantageous - A real-life scenario
Imagine that you are riding home from work when a delivery van loses control and hits you. This results in damage to your motorcycle, you, and injury to the van driver. In such a situation, having an insurance policy with both CTPL and comprehensive insurance would work in your favour, as the former will cover injuries sustained to the third party, in this case the van driver, and the latter will cover your hospital bill and bike repair costs.
Also Read: What is motorcycle insurance, and why do Filipinos need it
Cost analysis: CTPL vs. Comprehensive insurance
Insurance applicants often ask, Is comprehensive insurance expensive? Yes, if compared to CTPL insurance, which typically ranges from PHP 270 to PHP 500 annually.
The cost of comprehensive insurance primarily depends on the motorcycle’s make, model, the rider’s history, location, and claim history, among other factors. Speaking in numbers, the cost could range anywhere from PHP 2,000 to PHP 10,000 (or more).
At the moment, these numbers might seem significant; however, the cost is nothing compared to the repair and hospital costs you’ll have to bear in the absence of comprehensive insurance.
Pro tip: You can reduce your motorcycle insurance premium by one or all of the following practices -
- Bundling your policies like life, home, car, bike, etc
- Opting for higher deductibles
- Asking for ongoing offers, promotions, and discounts
- Maintaining a safe riding record
- Asking for No Bonus Claim in case of a claim-free previous year
How to apply for both CTPL & comprehensive insurance
You can apply for motorcycle insurance (both CTPL & comprehensive) via either an online or offline process. Let us discuss the two quickly, starting with the online application process -
- Visit the insurer’s website.
- Enter your motorcycle’s details.
- Input your personal information.
- Upload the required documents.
- Make the required payment.
Offline process
Visit the agent's office or partner branch in person and follow the required process, which typically involves completing the insurance application form, submitting the required documents, making the required payment, and reading the fine print.
Documents required
Typically, the following documents are required to obtain motor vehicle insurance in the Philippines: vehicle's OR/CR, a valid government-issued ID, a photo of the motorcycle, and a copy of past insurance (if applicable).
Also Read: How to get Motorcycle Insurance in the Philippines: A step-by-step guide.
Photo from FreepikHow to choose the right insurance provider
When selecting an insurance provider, look out for the following attributes -
- Fast and smooth claim process
- Excellent customer service, 24/7 support
- Wide coverage options
- High payout
- IC certification
Some of the known names in the Philippines insurance market are -
- Malayan Insurance
- FPG Insurance
- Standard Insurance
- Oona Insurance
- Mercantile Insurance
Benefits of having both CTPL and comprehensive
If you aren’t yet convinced about getting on both CTPL and comprehensive insurance for your motorcycle, here is one last attempt from our side. Get them included in your insurance package because -
- You’ll get complete protection against financial & legal liabilities.
- You’ll enjoy your ride with complete peace of mind.
- You are fully covered against common risks, including theft, accidents, and floods.
- You’ll be able to recover quickly after the incident.
Also Read: CTPL vs. Comprehensive Motorcycle Insurance: A simple guide for riders
Bottom line
Suppose you are a motorcycle owner in the Philippines. In that case, you have two options: either opt for only CTPL insurance coverage, which is a legal requirement, or add the support of comprehensive insurance, which is highly recommended and considered a wise choice. Remember, together the two make a firm policy offering you complete peace of mind and financial protection.
So, take our advice: don’t just settle for CTPL insurance - get comprehensive insurance today and secure your assets and yourself.
FAQs
Q1. Is CTPL insurance enough for a daily rider?
Ans. No, accidents or uncertain incidents can happen to anybody, anytime; therefore, it’s better to stay protected. Comprehensive insurance provides broader protection.
Q2. Can CTPL and comprehensive insurance be bought from different providers?
Ans. Yes, you can, but it is recommended to have a common provider for better offers and discounts.
Q3. For how long is CTPL insurance valid in the Philippines?
Ans. CTPL insurance is typically valid for a year and aligned with your motorcycle insurance.
Q4. Is it difficult to file a comprehensive insurance claim?
Ans. No, given that the insurer offers good customer support and a quick claim process.
Q5. Does comprehensive insurance include CTPL coverage?
Ans. It depends on the insurance provider and your plan. It is advisable to confirm every inclusion or exclusion beforehand.
Q6. What is the minimum coverage amount for CTPL insurance?
Ans. A policyholder usually gets up to PHP 70,000 to PHP 100,000 for third-party injury or death.
Q7. My motorcycle’s engine got damaged in the rain. Will my insurance cover this damage?
Ans. Only if your policy includes Acts of God coverage, which is usually part of the comprehensive insurance plan. If not, you’ll need to get it as an add-on.
Q8. How fast will I get the settlement/coverage amount?
Ans. In some cases, same-day coverage is available; otherwise, it is available within a few days.
Q9. Can I pay the motorcycle insurance premium on a monthly basis?
Ans. It depends on your insurer; some offer an annual payment scheme, while others also have semi-annual and monthly plans.
Also Read: Motorcycle insurance in the Philippines: Top FAQs answered
