Are you planning to buy comprehensive motorbike insurance in the Philippines? If yes, here are a few things you should know.
Is motorbike insurance compulsory in the Philippines?
Yes, all motorbike owners who apply for registration in the Philippines must first file for CTPL or TPL, also known as Compulsory Third-Party Liability insurance. Once insurance is obtained, the Land Transportation Office (LTO) will issue the vehicle’s registration. Note that each year, the motorbike’s registration needs to be renewed and it is the owner’s responsibility to obtain third-party liability insurance.
If you rent or borrow someone a motorbike in the Philippines, make sure to check the vehicle’s registration date. This will tell you if the motorbike’s TPL is still valid or has already expired.
How much does CTPL/TPL cost in the Philippines?
The cost of CTPL/TPL depends on the value of the motorbike that will be insured. You could get it for as low as 350 pesos. The main purpose of this insurance is to protect other people (third parties) who are walking, driving, and riding on the road. For example, if you are driving a motorbike in the Philippines and you got into an accident, your motorbike insurance provider will cover most of the expenses of the third party. However, there should be a police report which indicates the details of the incident. With the police report, the insurance provider decides who pays who.
What is comprehensive insurance?
In simple words, you are fully protected. With comprehensive insurance, you have yourself and your motorbike protected against your own damage, theft, and acts of nature. You also have an option to include third-party injuries in your insurance coverage. For example, you went out riding your motorbike and fell from the motorbike because the road was slippery. In this case, the motorbike was damaged and you also incurred injuries to yourself. If you only have CTPL/TPL, you and your motorbike won’t be covered, but with comprehensive insurance, the damages on the motorbike and the injuries you incurred would be covered.
Note that when you have an accident, you must not move the motorbike from the spot where it fell until the police have arrived. Always keep in mind to request a copy of the police report as it is one of the requirements you need to present when you file an insurance claim. Below you can see the breakdown of the cost and the coverage when you buy motorbike insurance:
What is own damage/theft?
Own damage is when your motorbike parts are broken during an accident, while theft is when your motorbike is lost or stolen.
Each insurance company has some percentage of deduction when they pay you. The example above shows a 5 percent deduction if there is a claim, which means you will get 5 percent less from the amount you have applied to claim.
Acts of God (AOG)
An example of AOG is when your motorbike gets hit by lightning and burned. Since lightning is not man-made and is an act of nature, your motorbike is protected by comprehensive insurance. You can file a claim for that.
How much does comprehensive motorbike insurance cost in the Philippines?
The motorbike insurance cost is calculated based on the current market value (CMV) of the motorbike. If you have a scooter with a CMV of 60,000 pesos, the premium will cost you between 2500 pesos to 3000 pesos for a year. If the motorbike’s CMV is higher, then relatively, your premium is also higher.
Where to buy comprehensive motorbike insurance in Cebu, Manila, Davao, or other cities in the Philippines.
The traditional way is to visit a physical store and speak with an insurance agent. However, because of digitalization, you can now buy insurance online in the comfort of your home. You do not have to go anywhere.
Book2wheel can connect you with several insurance companies in your area. All you need to do is simply fill out the form below. Also, filing a claim is as easy as buying insurance. All you need to do is submit an email to your insurance provider with the requirements. You no longer need to wait in line and risk yourself by going outside to visit their office.
Buy online, pay online, and claim online. Life is now more simple. Book2wheel now works with Cebuana Lhuillier which is available nationwide.
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Photo by Arteum.ro on Unsplash
What happens when the person at fault does not have an insurance and the other party has? How can we claim for our Insurance?
all parties must have 3rd party insurance on motorbike and car. make sure you check the insurance paper before renting motorbike and car in the Philippines.
It was good to read that comprehensive insurance protects both you and your motorcycle from damage caused by accidents, theft, and acts of nature. My husband recently bought a motorcycle for his future rides with his coworkers so I will tell him about this. I’m pretty sure he’ll be more comfortable riding the thing once he secures a motorcycle insurance agency that can help him get it insured.