LTO and Insurance Commission says Motorcycle CTPL is PHP 250
The Land Transportation Office (LTO) and the Insurance Commission of the Philippines recently sat down with the public to discuss a proposed hike in annual premiums for Comprehensive Third Party Liability (CTPL) insurance. The move is aimed at boosting the coverage limit to PHP 400,000, giving motorists better protection in the event of a road crash.
A CTPL insurance is the basic insurance required for all vehicles in the country. It covers expenses if you hurt or cause the death of someone else in a road crash — but it doesn’t cover damage to your own vehicle or motorcycle.
During the discussion, Insurance Commission Division Manager, Glenda Ortaliz, explained that insurance premiums for all types of motor vehicles (MVs) and motorcycles (MCs) are subject to a tariff that the agency has set. To view the tariff table, click here.
“For the uninitiated, tariffs are fixed price lists that determine the premium rates, which insurance companies can charge consumers for insurance products sold by them. When premiums are tariffed, insurance companies are not allowed to vary the prices chargeable on an insurance policy (fixed price),” says Michael Rellosa, Executive Director and Trustee, Philippine Insurers and Reinsurers Association (PIRA).
For instance, CTPL premiums are currently PHP 560.00 for private vehicles, PHP 1,100.00 for jeepneys, taxis, and minibuses, and only PHP 250.00 for motorcycles.
Wait a minute, PHP 250.00? As in half of PHP 500.00?
Suppose you’re like me, who chose to do the penitensya (penance) of personally renewing your motorcycle’s registration at the LTO. In that case, you’ve probably noticed that CTPL policies sold inside the compound (of a district or extension office) tend to cost more compared to those offered by providers like Cebuana Lhuillier or other insurance companies outside the agency.
Inside LTO compounds and those near it, motorcycle-specific CTPL policies usually go for around PHP 500 to PHP 750—or even higher. LTO Assistant Secretary, Atty. Vigor Mendoza II, has acknowledged this malpractice, stressing that his administration will no longer tolerate it.
“The LTO will never tolerate such thing. That’s why we’re now coming up with a policy: lahat ng mag-charge ng mas mataas, doon sa panukala ng Insurance Commission, eh we will not tolerate it. In fact, we will even blacklist it [insurance companies]. Nakikita ko kasi may karatula pa eh, diba? Ang lakas ng loob maglabas ng karatula. Hindi na tayo magpipikit mata dito,” said Mendoza.
(The LTO will never tolerate such practices. That’s why we are now drafting a policy: anyone charging higher than what the Insurance Commission has set will not be tolerated. In fact, we will even blacklist those insurance companies. I’ve even seen signboards being displayed, right? They have the audacity to put them up. We will no longer turn a blind eye to this.)
The LTO is urging motorists to report any irregularities through its Aksyon on the Spot hotline via Viber or SMS at 0929-292-0865. Asec. Mendoza also reminded insurance companies that they have until October 1, 2025, to comply.
