The Land Transportation Office has proposed an increase in the amount of benefits under the Compulsory Third-Party Liability insurance, aiming to boost the financial safety net for road accident victims.
The proposal, which includes corresponding premium adjustments for public utility vehicles (PUVs), was made during a public consultation with stakeholders on Monday, September 8. The consultation aimed to introduce reforms for the benefit of riders, public utility vehicle drivers, as well as all the passengers they serve.
Under the draft circular, the limit of liability will increase from the current P200,000 to P400,000. The death indemnity will also rise to P400,000, a 100 percent increase from its current coverage.
The benefit coverage for permanent disablement will also rise from P6,000-P50,000 in 2024 to P24,000-P200,000 this year.
In addition, the annual premium for CTPL on air-conditioned tourist cars will rise from P740 to P1,134, while taxis, PUJs, and minibuses will have an increase from P1,100 to P1,686. Public Utility Buses (PUBs) and tourist buses will have their premiums adjusted from PHP 1,450 to PHP 1,632.
The annual premiums for motorcycles, tricycles, private cars, Commercial vehicles (CV) light, CV medium, and CV heavy vehicles will remain the same.
The rates for these vehicles will stay at P250, P560, P610, and P1,200, respectively.
The LTO and other government agencies discussed proposed reforms, which they say are designed to benefit riders, drivers, and the commuting public. The initiative seeks to ensure that accident victims receive a higher level of financial assistance, while balancing the costs for different vehicle owners.
The public consultation was led by DOTr Undersecretary Ramon Reyes, Assistant Secretary and LTO chief Vigor Mendoza II, LTO Executive Director Greg Pua Jr., Insurance Commission Rating Division Manager Glenda Ortaliz, and representatives of the LTFRB and OTC.
