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Compulsory Third Party Insurance

published  First Published: 24/05/2011
Article written by: Nigel Brookson

 

Compulsory third party (CTP) personal injury insurance is insurance we all have on our registered cars; new or used, and whether we have purchased a car insurance policy or not.

When you register a car in Australia; which is a legal requirement to drive on Australian roads, car insurance in the form of compulsory third party personal injury insurance is either included as part of the registration, or must be purchased prior to registration; as is the case for NSW residents. In NSW prior to registration you must purchase a 'Green Slip' which covers you for compulsory third party personal injury insurance.

 

Compulsory third party insurance - Frequently asked questions

What is compulsory third party insurance?

Compulsory third party car insurance (CTP) is paid either at the time or prior to you registering a vehicle in Australia. It provides compensation to crash victims where the owner or driver of a registered Australian vehicle is at fault. It may also cover crash victims where a passenger is at fault.

Who is covered and compensated?

Compulsory third party insurance:

  • covers passengers, pedestrians, cyclists and other road users
  • provides cover 24 hours a day, Australia wide
  • compensates for reasonable treatment and other expenses.

It is important to remember that compulsory third party car insurance does not:

  • provide full compensation for persons who contribute to their injuries
  • cover injuries to the driver who is entirely at fault
  • cover damage to vehicles or property.

To be compensated, an injured person must prove that another (insured) person was at fault. An injured driver in a single vehicle crash is usually ineligible for compensation. However, if a passenger is injured in a single vehicle crash, generally that person can attribute blame to the driver and is therefore entitled to claim compensation.

Most road traffic cameras including red-light, speed and Safe-T cam detect unregistered and uninsured vehicles on Australian roads, in addition to police traffic enforcement, so to avoid detection register your vehicle and have compulsory third party insurance.

Green Slip

The NSW Motor Accidents Authority (MAA) regulates the insurers who provide you with green slip insurance. It also funds a large number of injury prevention programs, and rehabilitation programs for people injured in car accidents.

You purchase a green slip from insurers directly, not from the MAA. However, the MAA can provide you with advice on where to find the cheapest green slip. If you are purchasing a new car, the car dealer will generally have arranged a green slip for you.

There are many insurers competing for your business, so itís wise to shop around before purchasing your green slip.

If you cause an accident, your green slip insurance covers medical costs for:

  • your passengers
  • other road users, such as drivers, passengers, pedestrians, cyclists, motor cyclists and pillion passengers
  • injuries caused through the use of a trailer.

Your green slip insurance does not cover:

  • you for your personal injuries if you cause the accident
  • damage to property or other vehicles.

Remember that your green slip will only cover your vehicle if it is registered. If you allow your registration to lapse, you are personally liable for any injuries you cause in a motor vehicle accident.

Apart from third party insurance you then have the option to purchase a greater level of car insurance including comprehensive car insurance.

 

 

Related Article: Comprehensive Car Insurance, Car Insurance Tips & Advice, Car Insurance

 

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