What is third party liability insurance in the Philippines?

It pays other people for injury, death or property damage your car causes. CTPL is the compulsory part; excess bodily injury and property damage are voluntary.

Does CTPL cover property damage?

No. CTPL covers death and bodily injury to third parties only. Damage to another car or to property needs Section IV-2 property damage cover.

Is third party insurance mandatory in the Philippines?

CTPL is, for every vehicle the LTO registers. Excess bodily injury and property damage are optional covers you buy with a comprehensive policy.

Can I settle a minor accident without my insurer?

Yes, up to ₱5,000 on the spot under the standard wording. Larger settlements made without the insurer's consent are not covered.

What is the CTPL limit in 2026?

₱200,000 per accident for death and bodily injury, for all vehicle types. IC Memorandum Circular 2024-01 doubled it from ₱100,000.

Third Party Liability Insurance Philippines 2026

Third Party Liability Car Insurance in the Philippines (2026): CTPL, Bodily Injury and Property Damage

By Aditya AmanPublished Oct 3, 2026Editorial PolicyLives in the Philippines and has driven nearly every Luzon expressway with his family.

Third party liability insurance pays other people for injury, death or property damage your car causes. In the Philippines it has three layers: CTPL, excess bodily injury and property damage.

In short

CTPL is compulsory and costs ₱560 a year for a private car under IC Memorandum Circular 4-2006 (official source), in force since 1 January 2007. It covers death and injury only, up to ₱200,000 per accident since IMC 2024-01 (official source).

A damaged car, wall or gate needs property damage cover under Section IV-2.

CTPL, Sections I and II: Death and injury only, up to ₱200,000; compulsory
Excess bodily injury, Section IV-1: Injury and death above CTPL; voluntary
Property damage, Section IV-2: Other people's property; voluntary
CTPL price, private car: ₱560 a year (IC Memorandum Circular 4-2006, since 1 January 2007)
Tariff property damage limits: ₱50,000 to ₱1,000,000 for private cars (IC motor car tariff, October 2026)
On-the-spot settlement: Up to ₱5,000 without insurer consent (IC standard policy)

The three layers of third party liability

A third party is anyone except your fare-paying passengers, household members, relatives within the second degree and employees at work.

The IC standard Private Car Policy (official source), mandatory for policies issued from 1 July 2023, splits your liability to third parties into three sections.

Only the first layer is compulsory. The LTO will not register a vehicle without CTPL.

The other two layers come with a comprehensive policy, and excess bodily injury has its own guide.

Third party cover in the IC standard policy (Annex A, IMC 2022-02; CTPL limit per IMC 2024-01)
Layer	Covers	Compulsory?	Limit
CTPL, Sections I and II	Death and bodily injury	Yes	₱200,000
Excess bodily injury, Section IV-1	Death and injury above CTPL	No	Chosen on your schedule
Property damage, Section IV-2	Other people's vehicles, buildings and property	No	Chosen on your schedule

Choose property damage cover if you drive in traffic where a bumper, gate or storefront could be hit, because CTPL pays none of it. Compare what each policy type adds in comprehensive cover vs CTPL.

What property damage cover pays

Section IV-2 pays what you owe for damage to third-party property in an accident involving your car. Loading and unloading the car count too.

The other driver's bumper, a storefront, a gate or a lamp post all fall here.

Two conditions apply. Your liability must first be fixed, by a final court judgment or by a written agreement signed by you, the claimant and the insurer.

The cover also follows you when you personally drive a private car that is not yours. Until one of those exists, the insurer pays nothing on the claim.

Other car in a collision: Covered, up to your property damage limit
Wall, gate or storefront: Covered
Your own house or garage: Excluded: your property
Goods carried in your car: Excluded: property being conveyed
Property of your household: Excluded
Property in your custody: Excluded

What each insurer covers

Coverage	Alliedbankers Insurance	Alpha Insurance	Asia Insurance Philippines	Asia United Insurance	AXA Philippines	Bethel Insurance	BPI MS	Cibeles Insurance	Cocogen Insurance	Commonwealth Insurance	Corporate Guarantee Insurance	Country Bankers Insurance	FGen Insurance (Fortune General)	FPG Mercantile	Liberty Insurance	Malayan Insurance	Oona Insurance	Pacific Union Insurance	Paramount Insurance	Petrogen Insurance	PGA Sompo	PhilFirst Insurance	Pioneer Insurance	Prudential Guarantee	SGI Philippines	Standard Insurance	Sterling Insurance	Stronghold Insurance	Travellers Insurance
Own damage and theft	Included	Included	Not listed	Included	Included	Included	Included	Included	Included	Included	Included	Included	Included	Included	Not listed	Included	Included	Included	Included	Not listed	Not listed	Included	Included	Included	Included	Included	Included	Included	Included
Excess bodily injury	Included	Not listed	Not listed	Included	Included	Included	Included	Included	Included	Included	Included	Included	Included	Included	Not listed	Included	Included	Included	Included	Not listed	Not listed	Optional	Included	Included	Included	Included	Not listed	Optional	Included
Third-party property damage	Included	Not listed	Not listed	Included	Included	Included	Included	Included	Included	Included	Included	Included	Included	Included	Included	Included	Included	Included	Included	Not listed	Not listed	Optional	Included	Included	Included	Included	Not listed	Optional	Included
Auto personal accident	Included	Included	Not listed	Not listed	Included	Optional	Included	Included	Included	Included	Included	Included	Optional	Included	Not listed	Included	Included	Not listed	Included	Not listed	Not listed	Included	Included	Not listed	Included	Included	Included	Not listed	Optional
Acts of nature	Optional	Not listed	Not listed	Not listed	Optional	Optional	Optional	Not listed	Optional	Not listed	Not listed	Not listed	Optional	Included	Not listed	Not listed	Optional	Optional	Optional	Not listed	Not listed	Included	Optional	Not listed	Included	Not listed	Not listed	Not listed	Optional
Riot, strike and civil commotion	Not listed	Not listed	Not listed	Not listed	Not listed	Not listed	Not listed	Not listed	Not listed	Not listed	Not listed	Not listed	Not listed	Included	Not listed	Included	Optional	Not listed	Not listed	Not listed	Not listed	Not listed	Not listed	Not listed	Not listed	Not listed	Not listed	Not listed	Not listed
Roadside assistance	Included	Included	Not listed	Not listed	Optional	Not listed	Included	Not listed	Included	Not listed	Not listed	Not listed	Not listed	Included	Not listed	Included	Included	Not listed	Not listed	Not listed	Included	Included	Included	Included	Not listed	Included	Not listed	Not listed	Not listed
Loss of use	Not listed	Not listed	Not listed	Not listed	Not listed	Not listed	Not listed	Not listed	Optional	Not listed	Not listed	Not listed	Not listed	Not listed	Not listed	Optional	Optional	Not listed	Not listed	Not listed	Not listed	Not listed	Optional	Not listed	Not listed	Included	Not listed	Not listed	Not listed

Property damage limits insurers sell

The IC motor car tariff (official source) lists private car property damage limits from ₱50,000 to ₱1,000,000. Insurer documents name the limits below.

OONA's Auto Liability suits owners of older cars. It adds liability above CTPL without own damage, and it accepts vehicles over 8 years old.

Property damage limits as each insurer states them, October 2026
Insurer	Limit
Pioneer, online	₱100,000 to ₱500,000
Standard Insurance, Car Protect brochure	Up to ₱500,000
OONA, base comprehensive policy	₱200,000
OONA, Auto Liability	₱200,000 combined with bodily injury
BPI MS	Included as standard; limit set on the policy
Stronghold	Optional extension; limit set on the policy

When you hit someone's car or property

Small damage can be settled on the spot to keep traffic moving: the IC standard policy (official source) honours on-the-spot payments up to ₱5,000.

A larger agreement made without the insurer is excluded under the general exceptions, so you would pay it yourself. Report the accident as soon as possible either way, and see the claims guide for hotlines.

Before step 1: Your policy schedule showing a Section IV-2 limit, and a phone camera
Done when: The insurer confirms it will settle with the other party under your limit

Exchange details
Get the other driver's licence, CR, OR and insurer. Photograph both cars and their plates.
Get the police report
Pioneer and Malayan list a police report or notarized affidavit for third party claims. IC Circular Letter 2020-92 (official source) lets an affidavit stand in for the police report on property damage claims.
Collect the other side's papers
The insurer needs the third party's repair estimate and a certificate of no claim from their insurer.
- Third party's driver's licence
- Third party's CR and OR
- Repair estimate for the third party's car
- Certificate of No Claim from the third party's insurer
- Photos of the damage
Let the insurer settle
Under the standard conditions, the insurer may take over the settlement in your name.

The certificate of no claim shows the other driver's insurer is not paying for the same damage. Pioneer and Malayan both ask for it.