UP TO WHAT EXTENT CAN YOU HELD YOUR CAR INSURANCE (TPL) LIABLE

UP TO WHAT EXTENT CAN YOU HELD YOUR CAR INSURANCE (TPL) LIABLE?

This is only my opinion on the topic at hand. Take care and enjoy! God Bless!

Losses in traffic accidents have now become a social problem affecting public interest. Financial assistance or restitution must be reasonably extended to the victims regardless of the financial capability of motor vehicle owners or operators inflicting such losses.

In response to this, under the insurance law, it is already a prerequisite to registration of motor vehicles to be covered by sufficient insurance to answer for whatever losses such vehicle might inflict to passenger or third-party. For owners of private motor vehicles an insurance policy against third-party liability for death or bodily injuries is required. Moreover, for operators of land transportation or motor vehicles used to transport passengers for compensation like jeepneys and buses, additional passenger insurance is required (Insurance Code, Sec. 377).

Third Party Liability (TPL), in its general sense unless otherwise stipulated, means indemnifying for death or bodily injuries of persons other than the owner, driver, or its passenger. When the driver meet an accident, for instance, whereby he injures himself, he cannot claim from the TPL Insurance the cost for his hospitalization. However, when during the accident, he injured a man crossing the street, the driver may claim from the TPL Insurance for the indemnity.

It must be understood that damage to property like scratches, misplaced bumper, broken headlights are not within the scope of TPL insurance. PD 1814 dated January 16, 1982 deleted property damage from compulsory insurance. Again, only injuries or death to third persons are included in TPL insurance.