IC Plans to Increase TPL Insurance Premiums — Here’s What Car Owners Need to Know
The Insurance Commission (IC) is proposing major updates to TPL insurance Philippines (Compulsory Motor Vehicle Liability Insurance or CMVLI). These changes include a possible premium increase in 2025, along with significantly higher coverage benefits for accident victims.
If you own a car or renew your LTO registration yearly, this is one of the most important insurance updates you need to know.
Why the IC Is Increasing TPL Premiums
Current TPL insurance benefits have not kept up with today’s medical and legal costs. Because of this, the IC wants to update the indemnity limits to provide more realistic financial protection.
The goal is to:
For car owners in the Philippines, understanding TPL insurance Philippines is crucial for ensuring adequate protection on the road.
- Improve compensation for injured third parties
- Modernize coverage based on rising medical expenses
- Strengthen financial protection for both car owners and victims
- Ensure insurers can sustainably pay out claims
This update follows the growing number of vehicles in the country and the increasing number of road accidents.
What Benefits Will Increase?
Under the proposed update, TPL coverage in the Philippines will see improvements such as:
1. Higher Death Benefits
Current death compensation limits are no longer sufficient. The proposal aims to raise these to more reasonable levels.
2. Higher Medical Reimbursement
Accident-related medical costs have almost doubled over the years. The updated CMVLI limits will reflect these modern expenses.
3. Higher Funeral Benefits
Funeral assistance will be increased to provide more adequate support to families.
4. Improved Coverage for Permanent Disability
The revised TPL insurance policy will offer better compensation for partial or permanent disability.
In some categories, benefits may double compared to the current TPL limits.
Why TPL Premiums Will Increase
Increasing TPL insurance premiums is necessary to match the expanded coverage.
While the IC has not released the exact numbers yet, the expected changes mean:
- Slightly higher annual TPL cost
- Much better insurance protection
- Improved claims payouts
For most car owners, the increase will still be minimal compared to the added value.
How This Affects Your LTO Renewal
Once approved:
- Every TPL issued for LTO registration must follow the new pricing
- Renewals will automatically adopt the new premium
- No additional documents are required
- Insurers will automatically issue the updated CMVLI certificate
This means the change will be seamless for car owners.
Is Paying More Worth It?
Yes — because the current TPL coverage is outdated.
One accident can easily exceed ₱100,000 in medical and legal costs. Even with the increase in premiums, the financial protection you gain is significantly larger.
You benefit from:
- More realistic coverage
- Less personal liability
- Better assistance during accidents
- Updated compensation for victims
For a required insurance product, this upgrade is long overdue.
Final Thoughts
The proposed TPL premium increase in the Philippines for 2025 is one of the most significant updates car owners should watch out for. While premiums may rise slightly, the improved coverage will offer stronger protection for everyone on the road.
Once the IC finalizes the new rates, we’ll publish a full comparison chart.
Sources
- IC to hike motor vehicle insurance premium — The Philippine Star
- IC eyes increase in road-crash insurance — BusinessMirror
- Hike in vehicle insurance premiums under study — BusinessWorld
- Palace eyes higher insurance coverage for private cars — The Philippine Star / PNA
- Insurance growth accelerates across Philippine market segments — Insurance Business
- Insurance Commission (official site) — insurance.gov.ph
