What is CTP Insurance?
CTP insurance, or Compulsory Third Party insurance, is mandatory insurance paid when your car is registered.
CTP Insurance Coverage
Compulsory Third Party insurance covers the liability of anyone who drives your car for injuries caused to passengers and other road users in an at-fault motor accident. CTP insurance is required in Australia. To register your vehicle and get a motor vehicle registration in NSW, QLD, and SA, you must have CTP insurance.
What does compulsory third party (CTP) insurance cover?
Please note that CTP Insurance coverage varies from state to state.
In Queensland, the driver (and other drivers who use your vehicle) are covered by a CTP policy.
You can be covered for the liability for the following in a motor vehicle accident:
- Passengers in the car suffered injuries as a result of the accident
- Other road users, such as other vehicle drivers and passengers, pedestrians, cyclists, motorcyclists, and pillion passengers that may have been injured
- Injuries resulting from the use of a trailer when it is hitched to a vehicle
What does compulsory third party (CTP) insurance not cover?
Damage to your car, other vehicles, or property is not covered by CTP insurance. If you’re seeking this type of coverage, you need Comprehensive Car Insurance which you would purchase a policy for in addition to your CTP.
Why is CTP insurance mandatory?
When you consider the medical care and treatment costs that may be involved, as well as the possible loss of income during recovery, the cost to someone who is injured in a car accident can be enormous. In the worst-case scenario, people who have been injured may require costly care and medical expenses for the rest of their lives.
To ensure that injured parties in a motor vehicle accident are reimbursed regardless of the financial situation of the driver who caused the accident, all vehicle owners must get CTP insurance before registering their car.
Insurance protects both parties. That’s why one must be a registered and insured vehicle owner.
How is comprehensive car insurance different to CTP insurance?
CTP Insurance is different from Comprehensive Car Insurance. Comprehensive car insurance covers damage to your vehicle and damage you may cause to other people’s vehicles or property. This insurance is not mandatory and provides extra coverage if you have a motor vehicle accident.
What happens if I am injured in an accident with an uninsured car?
In Queensland, we have the Nominal Defendant which was established to compensate people who are injured as a result of negligent driving of an unidentified or uninsured vehicle. If you are injured by an unidentified or uninsured vehicle you can claim compensation from the Nominal Defendant. The Nominal Defendant then has the right to recover the debt from the owner of the vehicle.
The Nominal Defendant is funded by a levy incorporated into vehicle registration renewals. The Motor Accident Insurance Commission is the body responsible for the Nominal Defendant.
Does CTP insurance apply for injuries sustained in a single car accident?
Just because someone has been involved in a single vehicle accident, doesn’t mean it was their fault. Single vehicle accidents can occur because a driver is swerving to avoid a collision, or maybe the car lost control because of oil deposited on the road by another vehicle or possibly there may be some mechanical fault with the vehicle. In these cases, if the driver has suffered an injury, they may still be entitled to compensation.
Even if the driver of the single car accident is at fault, they may be entitle to a lump sum payment through the CPT ‘at-fault’ driver policy depending on the nature of your injuries. Most CTP insurance policies have provisions for ‘at-fault’ driver claims for very serious injuries and death.
If your injuries are very serious, you may be eligible for lifetime payments for treatment, care and support under the National Injury Insurance Scheme, Queensland (NIISQ).
What if I’m injured in a car accident on my way to or from work?
If you are injured in a car accident on your way to or from work, you will likely be entitled to Workers’ Compensation benefits, even if you are the driver at fault.
If the accident was caused by someone else’s negligence, you can bring a claim under the CTP scheme as well as receiving Workers’ Compensation benefits.
This article is a part of our Motor Vehicle Accident Claims Guide which is designed to help you navigate the process of making a motor vehicle claim where you may require a motor vehicle or car accident lawyer.
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