CTP Insurance Company

A CTP insurance company is duly licensed to provide motorists with assistance in the event of personal and fatal injury claims due to motor vehicle accidents. A CTP (Compulsory Third Party) case involves three parties: the owner/driver of the vehicle 'at fault', the CTP insurance company of the vehicle 'at fault' and the third party is the injured person.

What does a CTP insurance company do?

A CTP insurance company provides you with unlimited cover against claims for personal or fatal injury caused to another person, as a result of your negligence while driving. Having a CTP insurance company will not make you guilt-free but it will answer the expenses on medical assistance for the aggrieved party. Whether you are partly or fully responsible for causing injuries to another person, you will not be held liable for the financial cost of any claims made against you or your car's driver.

However, the CTP insurance company will not cover the damage on your vehicle or property resulting from your negligence in the road. Your CTP insurance company will not provide assistance in the repair or replacement of the vehicle of the third person involved.

How does the CTP insurance company work?

In countries like the UK, the CTP insurance company is still required to meet the claims even if the driver or owner who caused the injuries have breached or violated the warranties and/or conditions of his/her CTP policy. The CTP insurance company still has to support the injured third party with his/her medical expenses even if the CTP insurance holder does not have a current licence.

The CTP insurance company may seek to recover their expenses on the injured party from the uninsured/negligent owner and or driver.

What is the period of coverage of the CTP policy?

The CTP insurance company has your back for the whole period agreed upon and stated on your motor vehicle license and CTP insurance policy. A CTP insurance company may even extend it for 15 days after expiry provided payment will be made within the 15 days grace period.

Why do you need the services of a CTP insurance company?

Aside from the obvious reason that the CTP insurance company spares you the financial burden of paying up the medical costs of an injured third party, a CTP insurance is compulsory and a condition of your motor vehicle's registration. Skipping registration to avoid dealing with a CTP insurance company means hefty fines for the driver and owner of the vehicle.

When can you claim from your CTP insurance company?

An injured party may claim compensation from the CTP insurance company of the owner/driver of the 'at-fault' vehicle when negligence is established and proven. An injured party can still claim from the CTP insurance company even if he/she is partly at fault. However, the compensation they are entitled to may be reduced.

Again, the CTP insurance company will not give assistance for your own injuries. If as a driver you were a victim of another driver's negligent driving, you may claim against the other party's CTP insurance company and establish your case.