Insuring motorists

Insuring motorists | Daily Tribune

Traffic remains a problem in gridlocked Manila. We are most thankful to President Bongbong Marcos for suspending the proposed EDSA rehabilitation program that was supposed to start this year. We are now waiting for the next bright idea from the government on how to solve, if not improve, Manila traffic, which would take years to accomplish.

This writer was lucky to visit New York recently, where traffic can also be terrible during rush hour. But what makes it better for New Yorkers is the number of options they have to move people all over the city. They have an extensive subway system that can seemingly place you in every corner of Manhattan. On our trip, we discovered the convenience of using the Manhattan bus system, an alternative that may require less walking. Aside from these, there are numerous taxis and Grab or Lyft drivers, although these are clearly more expensive compared to the mandated $2.90 fare for each adult commuter using public transportation.

In Manila, we do not have the same convenience. Should you not own a private vehicle, you can take a taxi (or Grab), hitch a ride on a bus or jeepney, or get on one of the overhead rails in our three lines — MRT, LRT-1, and LRT-2. What has become most popular recently is the use of motorcycles, either owning one or hiring one for transport.

A reported 4 million vehicles traverse the chaotic roads of Metro Manila. These include nearly 1.6 million private cars and a growing number of motorcycles — estimated at 1.67 million — many of which are now being used as public utility vehicles or informal ride services. Against this backdrop of traffic congestion and frequent accidents, one often-overlooked safeguard quietly serves as a lifeline for motorists and pedestrians alike: compulsory third-party liability (CTPL) insurance.

Required by Philippine law for every motor vehicle registered with the Land Transportation Office (LTO), CTPL offers financial coverage for death or bodily injury caused to third parties. The benefit, capped at P200,000, may seem modest by international standards, but its presence ensures that victims of vehicular accidents are not left without any recourse. For many families, it can mean the difference between financial survival and destitution following a tragic accident.

Yet, when compared with more developed nations, the Philippine system begins to show its limitations. In the United States, for instance, every state mandates motor vehicle insurance, often including not just liability coverage but property damage and uninsured motorist protection. This guarantees that if an accident occurs, both the injured party and the at-fault driver have some level of security. Drivers are required by law to carry insurance that covers not only the other person’s injuries but also the damage to their own vehicle and medical costs.

Back in the Philippines, however, most motorists are content with the minimum legal requirement. Comprehensive motor insurance is optional and remains unaffordable for many. As a result, countless drivers are financially exposed in the event of major accidents. The discrepancy between what is required and what is needed leaves gaps in protection — not just for drivers, but for the general public as well.

This vulnerability was highlighted during a recent disruption on 4 June 2025, when a directive from the LTO affected the online authentication of CTPL. Several LTO branches reported interruptions in vehicle registration because the Land Transportation Management System (LTMS) was unable to verify insurance documents.

Ultimately, third-party liability insurance is not just a box to tick during registration season — it’s a civic responsibility. It ensures that no person is left helpless after an accident and that no motorist is forced into financial ruin. As the Philippines moves toward a more modern, connected road network, CTPL must evolve along with it.

For comments, email darren.dejesus@gmail.com.