What is CTP Insurance?
Compulsory Third Party insurance, or more commonly known as CTP insurance, also called CTP green slip, is compulsory for all car owners, regardless of which state you reside. CTP insurance offers the most basic form of coverage and financial protection for a car owner/driver against injuries caused to third parties in an accident.
Unlike other insurance types, a CTP green slip will not cover your vehicle or other property damaged during an accident. It also won’t cover your vehicle against theft, fire, or vandalism.
Any car you purchase and own, whether new or used, will need to have CTP insurance in order for you to legally register and drive the car.
CTP Insurance When Buying a New Car
When you buy a new car from a dealership, the CTP insurance is included as part of the on-road or driveaway costs. The only exception is when you are buying a new car from interstate. When this happens, the CTP insurance will be excluded and it will be your responsibility to purchase the insurance when registering the car in your state.
CTP Insurance When Buying a Used Car
When you purchase a used car, the CTP insurance automatically transfers over with the vehicle. As the buyer, it is your responsibility to transfer the registration from the seller’s name into your name. If you purchase an unregistered vehicle, however, you will need to take out a new policy prior to having the car registered.
How CTP differs between the different Australian States
Across Australia, CTP insurance basically offers the same type of coverage. But there are certain differences. In states, such as New South Wales (NSW), you purchase a CTP green slip before you register your car.
Evident differences among Australian states are in the CTP liability and compensation. Let’s take a look at the different requirements and rules regarding compulsory third party insurance in each Australian state.
CTP Greenslip in New South Wales (NSW)
A CTP green slip is required before you register your vehicle in NSW. NSW CTP is compulsory and indemnifies you against claims. It provides compensation to people killed or injured in an accident involving your vehicle.
In NSW, the CTP scheme is split into the Lifetime Care and Support Scheme and the Third Party Insurance Scheme.
The Third Party Insurance Scheme compensates people killed or injured, while the Lifetime Care and Support Scheme provides ongoing care and a higher level of benefit to third parties severely injured in a car accident.
The State Insurance Regulatory Authority (SIRA) determines CTP insurance in NSW. Factors influencing the price include location, vehicle type, driver age, driving record and current insurance status.
CTP insurance options in NSW include
- AAMI CTP insurance
- Allianz green slip
- CIC Allianz green slip
- GIO green slip
- NRMA CTP Insurance
- QBE green slip
CTP Insurance in the Australian Capital Territory (ACT)
The ACT Compulsory Third-Party Insurance Regulator or CTP Regulator is responsible for regulating the compulsory third party insurance scheme in the ACT.
In the ACT, you can pick between four licensed insurers for a CTP green slip. The insurance options available in the state include
- NRMA green slip
- GIO green slip
- AAMI CTP insurance
- APIA green slip
Unlike in NSW, the premiums on CTP insurance in the ACT do not differ based on risk factors such as age, location, claims history or driving record.
Instead, the CTP premium in the ACT for a Class 1 passenger vehicle remains the same, regardless of the differences in the aforementioned factors. Premiums are fixed by the insurers and approved by the CTP Regulator.
CTP insurance is mandatory in the ACT for all cars and has to be paid before a vehicle’s registration. If your vehicle in the ACT is not registered prior to an accident, you may be liable for damages to the injured person and fined accordingly.
CTP Insurance in Victoria (VIC)
CTP insurance VIC is administered by the TAC (Transport Accident Commission), which is also the sole issuer of CTP green slips in Victoria.
Claims are made to the TAC. They pay compensation for injuries or death caused by a car accident. Depending on the circumstance, compensation may cover the cost of income assistance, medical treatment and rehabilitation, disability services, household support and more.
To make a claim under the CTP insurance VIC scheme, the car accident must have occurred in Victoria or the vehicle that caused the accident must be registered in Victoria.
Unlike the Tasmanian and Northern Territory CTP schemes, the CTP insurance VIC scheme is not fault based. But the cost of getting CTP is included in the cost of vehicle registration or renewal.
CTP Insurance in Queensland (QLD)
You can’t legally drive a car, register or renew your car’s registration in Queensland without having CTP insurance.
In Queensland, CTP insurance protects you against financial liability when you (or someone else driving your car) injure or kills a third party.
Unlike some states, Queensland lets you pick which insurance provider you’d like to receive a CTP green slip from. You can also switch to a different provider upon expiration of the vehicle’s registration.
CTP insurance options available in Queensland include
- Allianz CTP QLD
- QBE CTP QLD
- RACQ CTP
- Suncorp Insurance
The Motor Accident Insurance Commission (MAIC) in Queensland is responsible for setting the range of CTP insurance prices in the state.
CTP Insurance in South Australia (SA)
In the past, Allianz SA CTP was the sole provider of CTP insurance in South Australia. It was managed by the Motor Accident Commission (MAC). Changes in legislation effective July 1st, 2016 resulted in the scheme being managed by the CTP Insurance Regulator.
CTP green slip providers were expanded to include
- AAMI
- Allianz
- SGIC
- QBE green slip
All CTP insurers in South Australia are required to provide the same CTP insurance terms and compensation package at uniform prices. You’ll get the same deal regardless of which provider you choose.
CTP Insurance in Western Australia (WA)
CTP insurance is compulsory for all Western Australian (WA) car owners to protect the driver of the vehicle against personal injury claims. It is illegal to drive an unregistered car or not have CTP insurance.
Western Australia CTP is unique. The coverage’s premiums are included in the registration fee when you register a new vehicle or renew your registration.
The ICWA (Insurance Commission of Western Australia) is the only body in WA that issues CTP insurance. The body is also responsible for managing the scheme. The cost of CTP cover is typically determined by the class of the vehicle being issued cover.
CTP Insurance in the Northern Territory (NT)
The CTP Insurance scheme in the NT is also known as the Motor Accidents Compensation (MAC) scheme. CTP insurance in the state is issued by the Territory Insurance Office (TIO), which is a division of Allianz Australia.
Unlike other states, the CTP insurance scheme in the NT is a no-fault CTP scheme. You don’t have to prove fault before you make a claim. If the accident is caused by reckless conduct, driving under the influence or driving while unlicensed, you’ll receive a smaller compensation.
You cannot choose a CTP provider in the NT and payments for the MAC scheme is calculated as part of your car registration or renewal fee.
CTP Insurance in Tasmania
Same as other Australian states, CTP insurance is mandatory in Tasmania. Tasmania CTP insurance applies a no-fault scheme but combines it with common law. Common law damages can be claimed in full if the personal injury to a third party is caused by a driver’s negligence.
In Tasmania, you pay your CTP premium to the Motor Accidents Insurance Board (MAIB). They are also responsible for overseeing the insurance scheme. The cost of the premium is determined by your vehicle type. But the good news is that Tasmanian CTP insurance premiums are the lowest in Australia.
Conclusion
In all Australian states, CTP insurance will not compensate you for damages to your vehicle or that of a third party. Neither will it cover you for theft of your vehicle or damages to other properties.
For more extensive car insurance coverage, you will need to combine your CTP with either comprehensive cover or third party cover.