CTPL premiums may increase soon due to higher liability coverage

The Land Transportation Office (LTO) and the Insurance Commission of the Philippines have conducted a public consultation today, September 8, 2025, to discuss a proposed increase in Comprehensive Third Party Liability (CTPL) insurance premiums. The proposal would raise the premiums for motor vehicles, Public Utility Vehicles (PUVs), and trucks in exchange for a higher limit of liability, proposed at PHP 400,000.

The proposal from the Insurance Commission outlines a premium increase that will affect only PUVs. The annual CTPL premium for taxis and jeepneys is set to rise from PHP 1,100 to PHP 1,686. Meanwhile, tourist cars will see a premium increase to PHP 1,134 from their previous rate of PHP 740, and the rate for buses will increase to PHP 1,632 from PHP 1,450.

20% increase for private vehicles not factored in

The proposed premium hike faced immediate opposition from several PUV groups present at the consultation. During the meeting, LTO Assistant Secretary Atty. Vigor Mendoza II addressed Ms. Glenda Ortaliz, Division Manager, Insurance Commission, clarifying that the new proposal should take into account an earlier 20% CTPL premium increase recommended by the Philippine Insurers and Reinsurers Association (PIRA).

If this is considered, private vehicle owners should expect to pay an annual CTPL premium of PHP 672, from the current PHP 560.

Claims desk to be established

During the meeting, concerns were raised that CTPL has been reduced to a registration requirement, failing in its primary purpose of protecting motorists and the public in case of a road crash. The reason for this is the difficult and often frustrating claims process, with insurers often accused of delaying payments or requiring an unreasonable amount of documentation before a claim is released.

As a result of these difficulties, many motorists simply choose to settle damages or bills out of pocket to avoid the complicated and drawn-out claims process.

The LTO promised that the agency would compel insurance companies to create their own claims desk to simplify the claims process.

“Kahit gaanong kaganda ang ating proyekto, kung aabutin naman ng taon-taon para makapag-claim ang isang may-ari ng sasakyan, ay patay-patay po tayo dito,” said Mendoza.

(No matter how good our project is, if it takes years for a vehicle owner to file a claim, lives could be at stake here.)

LTO to blacklist pasaway insurance companies

Additionally, the LTO has promised to blacklist any insurer that was proven to be involved in delaying or non-payment of insurance claims by motorists.

Asec. Mendoza also acknowledged the prevalence of CTPL companies overcharging clients. In a firm statement, he vowed to take a hardline stance against such companies and their unethical practices, saying, “Hindi na tayo magpipikit mata dito.” (We won’t turn a blind eye to this anymore.)