Title
3-Year Compulsory 3rd Party Liability Insurance
Law
Ic Circular Letter No. 10-2005
Decision Date
Apr 11, 2005
The Insurance Commission mandates the implementation of a 3-Year Compulsory Third Party Liability (CTPL) insurance policy for the initial registration of all brand new motor vehicles, aiming to enhance public confidence and eliminate fraudulent practices in vehicle insurance.
A

Q&A (IC CIRCULAR LETTER NO. 10-2005)

The CTPL insurance policy must have a duration of three years in connection with the initial registration of all brand new motor vehicles.

The Land Transportation Office (LTO) enforces the requirement of CTPL insurance policy before registration or renewal of registration of any motor vehicle.

The motor vehicle owner must present and file substantiating documentation in a form approved by the Commissioner evidencing that the policy of insurance, guaranty in cash, or surety bond required by law is in effect.

No policy, certificate, or contract of insurance shall be issued or delivered within the Philippines unless it is in a form previously approved by the Insurance Commissioner.

Not earlier than May 2, 2005.

No, the forms for 3-Year CTPL coverage must be separate and distinct from comprehensive motor vehicle insurance policies and must be approved by the Insurance Commissioner.

The Philippine Insurers & Reinsurers Association (PIRA) pools accredited insurance companies to provide 3-Year CTPL coverage.

This Circular supersedes any and all previous circulars on the same subject regarding CTPL insurance.


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