What is (CTPL) Compulsory Third Party Insurance?

Compulsory Third Party Insurance (CTP), also known as Compulsory Third Party Liability Insurance (CTPL), is a type of insurance that provides coverage for bodily injury or death resulting from a motor vehicle accident. It is mandatory in many jurisdictions for all motor vehicles to have CTP insurance before they can legally be driven on public roads.

CTP insurance typically covers the cost of compensation for personal injuries sustained by individuals involved in a motor vehicle accident, including drivers, passengers, pedestrians, and cyclists. This coverage helps ensure that victims of accidents receive necessary medical treatment, rehabilitation services, and financial compensation for their injuries.

The specifics of CTP insurance, including coverage limits, eligibility criteria, and premium rates, can vary depending on the laws and regulations of each jurisdiction. In some places, CTP insurance is included as part of vehicle registration fees, while in others, vehicle owners are required to purchase it separately from private insurance providers.