How to Claim CTPL Insurance After an Accident (No-Fault Claim)

CTPL stands for compulsory third-party liability insurance. The Insurance Code calls it compulsory motor vehicle liability insurance. The rules are in Sections 386 to 401 of the Insurance Code, as amended by Republic Act No. 10607 (2013).

Section 387 makes it unlawful to operate a motor vehicle on public highways unless there is a policy of insurance, a cash guaranty or a surety bond to cover "the death, bodily injury, and/or damage to property of a third-party or passenger" arising from its use. The LTO will not register or renew the registration of a vehicle without proof of this cover (Section 389). That is why CTPL is part of every registration. See our vehicle registration renewal guide.

Violating these rules, for example by operating a vehicle without the required cover, is punished by a fine of not less than ₱500 and/or imprisonment of up to six months (Section 401).

It is a claim paid without proving that the driver was negligent. Section 391 says a claim for death or injury to a passenger or third party "shall be paid without the necessity of proving fault or negligence of any kind".

• Minimum amount. The total indemnity for any one person "shall not be less than Fifteen thousand pesos". This is a floor set by the law. The Insurance Commissioner may set a schedule of indemnities, and we did not read the current one, so we do not give a higher figure.
• Not for profit. Section 396 says the indemnity is "assistance or restitution", not a way to get rich from an accident.

The no-fault payment does not end your other rights. If the insurer pays only the no-fault indemnity, the claimant can still pursue the rest of the claim (Section 398).

Passengers and third parties who were killed or injured, or the proper payee for someone who died.

The law defines a "third party" as anyone other than a passenger. It excludes members of the owner's household, family members of the owner within the second degree of consanguinity or affinity, and the owner's employees for injuries arising out of their work (Section 386(c)).

Only one vehicle. Section 391(c) sets the rule:

• If you were inside a vehicle, or getting on or off it, claim from the insurer of that vehicle.
• In any other case, such as a pedestrian, claim from the insurer of "the directly offending vehicle".

The insurer that pays keeps the right to recover from the owner of the vehicle responsible for the accident.

Section 391(b) lists the proofs that are "sufficient evidence to substantiate the claim" when submitted under oath:

1. the police report of the accident; and
2. the death certificate and evidence of who the proper payee is; or
3. the medical report and evidence of the medical or hospital expenses you want refunded.

The written notice of claim must state "the nature, extent and duration of the injuries sustained as certified by a duly licensed physician" (Section 397), and it must be presented "without any unnecessary delay". So the claim needs a physician's certificate, and the medical and hospital receipts are the proof of expenses.

To identify the vehicle and its owner, Section 55 of Republic Act No. 4136 requires the driver to give his name and address and the owner's name and address at the scene.

If you and the insurer do not agree on the amount, the insurer pays only the no-fault indemnity. It cannot require you to sign a quitclaim or a release to get that payment (Section 398). Disputes on CTPL policies fall under the original and exclusive jurisdiction of the Insurance Commissioner, subject to the limits in the Code (Section 398).

The no-fault rule covers death and injury only. For damage to a vehicle or other property, the owner must usually show who was at fault and claim from the person responsible under the Civil Code. See Is the car owner liable for the driver's accident? and What to do after a road accident.

These are made-up examples to show how the rules work. They are not advice for any real case.

Mylene is a jeepney passenger. The jeepney collides with a pickup and she breaks her arm. Because she was inside the jeepney, she claims from the jeepney's insurer. She does not have to prove that the jeepney driver caused the crash. She sends a written notice with a doctor's certificate within six months.

Tonyo is crossing the street when a motorcycle hits him. He was not riding any vehicle, so he claims from the insurer of the motorcycle, "the directly offending vehicle". His proofs are the police report, the medical report and his hospital receipts, submitted under oath.

Liza waits eight months before sending her notice of claim. Under Section 397, a notice filed after six months means the claim is "deemed waived". She may still have a claim for damages against the driver at fault, which is a separate case.

Talk to a lawyer if the insurer denies your claim, if the amount offered seems too low for serious injuries or a death, or if you are asked to sign a quitclaim. A lawyer can tell you whether to go to the Insurance Commission or to court, and how the insurance claim fits with a case against the driver or owner. If you cannot afford a lawyer, see Free legal help in the Philippines for the Public Attorney's Office (PAO) and other options.