In short
It pays up to ₱200,000 to people your vehicle injures or kills, under IC Memorandum Circular 2024-01 (official source) since 2024. The LTO will not register or renew a vehicle without it.
It never pays for your own car.
- Also called
- Compulsory Motor Vehicle Liability Insurance (CMVLI)
- Legal basis
- Insurance Code as amended by RA 10607, Secs. 386 to 402
- Limit of liability
- ₱200,000 for all vehicle types (IC Memorandum Circular 2024-01, since 2024)
- No-fault payment
- ₱30,000 per person (IC Memorandum Circular 2024-01, since 2024)
- 1-year premium, private car
- ₱560 (IC Memorandum Circular 4-2006, policies issued since 1 January 2007)
- 3-year premium, private car
- ₱1,610, for brand-new vehicles (DOTC AO 010-2005; IC CL 10-2005 of 11 April 2005)
- Driving without it
- Fine of at least ₱500, up to 6 months in prison, or both (Insurance Code Sec. 401, as amended by RA 10607)
How much is CTPL at the LTO in 2026
The Insurance Commission fixes the CTPL premium by vehicle class, and the totals below include all three taxes. The table comes from IC Memorandum Circular 4-2006 (official source) and applies to policies issued from 1 January 2007.
In 2024, IC Memorandum Circular 2024-01 doubled the benefits but kept these premiums, so the price has not moved since 2007.
| Vehicle class | 1 year | 3 years |
|---|---|---|
| Private cars, jeeps and utility vehicles | ₱560.00 | ₱1,610.00 |
| AC and tourist cars | ₱740.00 | ₱2,120.00 |
| Light and medium trucks, not over 3,930 kg | ₱610.00 | ₱1,750.00 |
| Heavy trucks and private buses over 3,930 kg | ₱1,200.00 | ₱3,440.00 |
| Taxi, PUJ and mini bus | ₱1,100.00 | ₱3,150.00 |
| PUB and tourist bus | ₱1,450.00 | ₱4,150.00 |
| Motorcycles, tricycles and trailers | ₱250.00 | ₱720.00 |
Where the ₱560 comes from, and why some sellers charge more
The private car premium is a basic premium of ₱447.11 plus three taxes. Add them up and you reach the tariff total exactly.
Prices at the counter often run higher because fees for authentication and the LTO IT system sit on top. A 2016 IC breakdown (official source) put the all-in private car price at no more than ₱625.40, with a ₱50.40 LTO IT fee.
Standard Insurance (official source) sells 1-year CTPL online at ₱610.40, exactly ₱50.40 above the tariff. OONA sells it at ₱599, which it says covers all taxes and fees.
The prices below are the insurers' own, as listed in October 2026.
- Standard Insurance online, 1-year renewal
- ₱610.40
- Standard Insurance online, 3-year brand new
- ₱1,660.40
- OONA online, private car
- ₱599, taxes and fees included
- OONA online, motorcycle
- ₱290
- Cibeles, private car
- ₱730.40 for 1 year; ₱1,780.00 for 3 years
- Paramount verification fee
- ₱46 per vehicle, on top of the premium
| Line | Rule | Amount |
|---|---|---|
| Basic premium | IC tariff | ₱447.11 |
| Documentary stamp tax | 12.5% of premium, NIRC Sec. 184 (official source) | ₱55.89 |
| VAT | 12%, NIRC Sec. 108 (official source) as amended in 2018 | ₱53.65 |
| Local government tax | 0.75% in the IC table | ₱3.35 |
| Total premium | ₱560.00 |
CTPL at a glance
- Pays third parties up to
- ₱200,000 for death or injury, all vehicle types
- No-fault payment
- ₱30,000 per person, whoever caused the accident
| Vehicle class | 1 year | 3 years |
|---|---|---|
| Private cars (incl. jeeps and utility vehicles) | ₱560.00 | ₱1,610.00 |
| AC and tourist cars | ₱740.00 | ₱2,120.00 |
| Light and medium trucks (own goods), not over 3,930 kg | ₱610.00 | ₱1,750.00 |
| Heavy trucks (own goods) and private buses over 3,930 kg | ₱1,200.00 | ₱3,440.00 |
| Taxi, PUJ and mini bus | ₱1,100.00 | ₱3,150.00 |
| PUB and tourist bus | ₱1,450.00 | ₱4,150.00 |
| Motorcycles, tricycles and trailers | ₱250.00 | ₱720.00 |
CTPL meaning: what it covers and who counts as a third party
CTPL pays for death and bodily injury your vehicle causes to other people. The Insurance Code, Sec. 386(c) (official source) defines a third party by exclusion.
It is anyone other than a passenger, a household member, a relative within the second degree or your employee at work. Passengers still have the no-fault claim.
CTPL is Sections I and II of the standard policy: death and bodily injury only. Property damage you cause is Section IV-2, a voluntary cover, and your own car is Section III.
Those need a comprehensive insurance policy, compared in the car insurance hub. Choose CTPL alone only if you can pay for your own car's repairs and for property you damage.
Otherwise add comprehensive cover, as CTPL vs comprehensive insurance explains.
| Benefit | Amount |
|---|---|
| Third-party liability limit | ₱200,000 |
| Death indemnity, burial and funeral included | ₱200,000 |
| No-fault indemnity per person | ₱30,000 |
| Other incidental expenses | Up to ₱10,000, within the limit |
The statute's own floor for a private car is only ₱20,000 to ₱30,000. The IC raised the working limit far above it: ₱100,000 in 2006, then ₱200,000 from 2024.
LTO-accredited CTPL: who may sell it
Only an insurer authorized by the Insurance Commission may issue CTPL, and the Commission sends the LTO the list of those companies. Look up your insurer in the IC list of licensed insurers as of 31 August 2026 (official source).
The policy's Certificate of Coverage must also be recorded in the IC Gateway, or the LTO will not accept it. LTO Memorandum Circular ACL-2010-1271 (official source) set that rule from 16 February 2010.
How those checks work, and how to check your own cover, is in how to check if a car is insured.
A brand-new vehicle gets 3-year CTPL at its first registration, under DOTC Administrative Order 010-2005, applied by IC Circular Letter 10-2005 (official source).
An agent's commission on CTPL is capped at 10% of the premium, and government offices may not act as agents.
How a CTPL claim works, in short
The injured person claims from one insurer, set by the law, and receives up to ₱30,000 without proving fault. The deadline for written notice is 6 months from the accident, under Sec. 397 of the Insurance Code.
A notice filed later is treated as waived. Steps, documents and the schedule of indemnities are in how to claim CTPL insurance.
What the law requires
The rules sit in Chapter VI of the Insurance Code. The premiums and current limits come from Insurance Commission circulars.