Everything You Need to Know About CPTL

Having a comprehensive motor insurance is a responsibility that car owners should take seriously. Being covered by such policy enables motorists to get protected from any sudden financial expenses due to car accidents.

About CPTL - Everything You Need to Know About CPTL

Apart from the comprehensive insurance policy, motorists also need an insurance policy that covers third-party people. This insurance coverage is called compulsory third-party liability or CTPL.

But, what is CTPL? How does it work?

To help you get a grasp of it, we provided everything you need to know about the compulsory third-party insurance policy.

What is CTPL?

A compulsory third-party liability is a type of car insurance that concentrates on the well-being of the third-party involve in a car mishap. Many areas and regions require this type of motor insurance before they can register their vehicle.

Compared to a comprehensive insurance policy, a compulsory third-party insurance coverage has a limited benefit and focuses only on the third-party person.

What are the coverages of third-party insurance policy?

Even though it does not have a comprehensive benefit, CTPL has its fair share of useful coverages. Here are some of the benefits that an insured can get:

  • Bodily injury

The bodily injury inclusion covers the hospital expenses of the third-party person involved in the car accident. The cash benefit may be used to cover ambulance service, drugs and medicine, hospital and operating rooms, and surgical expenses, among others.

  • Permanent disability

The permanent disability benefit provides cash benefit to the third-party person in case of dismemberment. Each body part corresponds a certain amount.

  • Death benefit

This death benefit provides a cash benefit to the third-party person in the event of death. The amount of the cash benefit may differ, depending on the motor insurance provider you choose.

These are the common inclusions of a CTPL. However, this may vary depending on the motor insurance provider you choose.

What are the requirements when applying for CTPL?

The required documents for CTPL application may be different from one insurance provider. But, here’s the list of the common requirements being asked by an insurance company.

  • Tin number
  • Vehicle details, such as brand, vehicle color, model or series, manufacturing year, plate number, and engine number
  • Premium payment

How to apply for this type of motor insurance?

  • Search for an auto insurance provider.
  • Compare different companies to see which one offers the best deal.
  • You can opt to use online comparison site to have an easier and quicker insurance shopping.
  • Check the eligibility requirements of your chosen vehicle insurance company to make sure you are qualified.
  • Complete the necessary documents and submit it to the provider.
  • Wait for their feedback. An insurance company representative will process your application.

Key Takeaway

Getting for an insurance policy is one way to be a responsible car owner. This enables you to save money in the future in case vehicle mishap happens.

When looking for the best motor insurance policy, refer to this simple guide to CTPL policy to help you get the best coverage for your need.

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