21/06/2019
What is Motor Car Insurance?
It is a contract of insurance wherein the insurer (the insurance company) promises to indemnify the assured for loss, damages and/or liability arising due to accident from the use, operation and maintenance of a motor vehicle.
Vehicles are classified as private and commercial for purposes of insurance.
Private Vehicle – those used for social, domestic and pleasure purposes and the insured’s business or profession.
Commercial Vehicle – those used for domestic and business purposes of transporting products or goods; and not for transporting passengers for compensation.
Basic Motor Car Insurance Coverage
Compulsory Third Party Liability (CTPL) – This is the mandatory law requirement before any vehicle is
registered with the Land Transportation Office (LTO). This covers liability for death or bodily injury of third parties as a
result of fault or negligence of the assured or authorized driver while driving the insured vehicle. Third party here refers to not the insured, the driver, passenger or not in any way related to the insured
Own Damage & Theft (OD & Theft) - covers against loss (carnap/theft) or accidental damage to the insured's own
vehicle.
Excess Third Party Liability-Bodily Injury (EBI) - covers expenses in excess of the schedule provided by the P100K limit required by law.
Voluntary Third Party Liability-Property Damage (VTPL-PD) - responsible for the liability caused by insured’s vehicle
Property Damage accidentally damaging a third party property.
Documents Required in Claim Settlement
1. Police Report or Notarized affidavit of the accident
2. Photocopy of the following:
a. Driver’s license and official receipt
b. Certificate of Registration and Official Receipt
c. Policy and official receipt
3. Stencil of the vehicle’s Motor and Chassis Numbers
4. Pictures of Damaged portion
5. Repair cost estimates from at least two (2) repair shops
6. Original Medical Receipts (3rd party claims involving
bodily injury)
7. Death Certificate (for 3rd party claims involving death)
plus Funeral/Burial Expenses Receipts; Marriage
Contract (for spouse), Birth Certificates (for beneficiaries)
8. Other pertinent documents in relation to the claim.
