Top CTP questions answered

This article was originally published in September 2019 and has been updated.

There’s a lot of confusion around Compulsory Third Party (CTP) insurance.

CTP insurance, also known as a Green Slip in NSW, is a type of accident compensation paid to people physically or psychologically injured in a car accident.

A common misconception is that CTP covers damage to cars and property when, in fact, it doesn’t.

Here are more answers to the top CTP questions.

What’s covered by CTP?

Compulsory Third Party (CTP) covers claims made against you if you or anyone else driving your car has an accident and someone is injured or dies. CTP doesn’t cover damage caused to vehicles or property. For that, you’ll need car insurance.

Here are some scenarios covered by CTP insurance:

• If you cause an accident and a person is injured or dies.

  If you’re involved in a car accident while driving, whether partially or wholly your fault, your CTP policy covers the compensation costs for the person if they’re injured or die. Compensation costs involve rehabilitation, treatment, payments to support income or funeral expenses.

• If someone harms or kills you in a vehicle accident.

  If someone else causes an accident on the road and you’re injured or if you die, you or your next of kin can claim compensation from the CTP insurer that covers the person who caused the accident, known as the ‘at fault’ driver.

• If an uninsured or anonymous person injures or kills you in a vehicle accident.

  In some states in Australia, including NSW and QLD, you or your next of kin can be eligible for compensation if you’re injured or if you die in an accident caused by someone anonymous, for example, in a hit and run, or by a person driving an unregistered vehicle.

  A CTP insurer will be assigned to the case by the CTP scheme regulator and the claim is made through what’s called a ‘nominal defendant’.

Is CTP insurance compulsory?

CTP insurance is required by law in all Australian states and territories. All vehicles must have CTP insurance to be registered.

What does New South Wales CTP insurance cover?

CTP insurance in New South Wales is also known as a Green Slip.

If you were injured physically or psychologically in a car accident before 1 December 2017, you might be eligible for personal injury benefits or lump-sum compensation if the accident was not your fault.

If you’re the next of kin or the legal representative of someone killed in a car accident, you may be eligible for compensation for relatives, for example, if you were financially dependent on the deceased relative or for funeral expenses.

Does CTP insurance cover me anywhere in Australia?

CTP insurance covers you anywhere you drive in Australia regardless of the state or territory your vehicle is registered.

If you cause an accident that injures or kills someone while driving interstate, the person or their next of kin is eligible for compensation from your CTP insurer.

If you cause an accident and are injured or die, your eligibility for compensation will depend on your state’s no-fault or fault-based CTP scheme:

Fault-based scheme

In a fault-based scheme, a driver wholly at fault in the accident, or their next of kin, is not eligible for compensation for death or injuries

No-fault scheme

In a no-fault scheme, a driver who caused the accident may be eligible for compensation for their injuries or death.

Despite this, some governments have established various schemes for catastrophic injuries regardless of fault. Please refer to your relevant State or Territory authority below for more information:

Does CTP insurance cover vehicle damage?

No. CTP insurance doesn’t cover vehicle damage because it’s a form of personal injury compensation. You’ll also need comprehensive or third party insurance to cover vehicle damage.

Does CTP insurance cover other cars?

No. CTP insurance doesn’t cover damage to other people’s vehicles if you’re liable in a car accident. If you want cover for vehicle damage, you’ll need comprehensive car insurance or third party car insurance.

Is CTP and Green Slip the same?

Yes. CTP is also called a ‘Green Slip’ in New South Wales. Here you must buy a Green Slip before registering a vehicle.

Do you need CTP insurance if you have comprehensive?

Yes. CTP and comprehensive insurance are different forms of cover. CTP insurance is a form of personal injury insurance required by law.

Comprehensive car insurance covers the costs to repair or replace your car if it’s damaged or stolen and the costs of damage to another person’s car or property if you’re liable for an accident.

How do I get a CTP Green Slip?

Multiple insurers in New South Wales offer CTP insurance, also known as a Green Slip.

You can get a quote and buy your CTP Green Slip insurance online with QBE, or call 133 723 to buy your policy over the phone.

What’s the difference between CTP and third party insurance?

Third party car insurance is a separate type of insurance that protects you if you’re at fault in a car accident and damage another person’s car or property.

Other types of car insurance to consider in comparison to third party insurance are third party fire and theft and comprehensive car insurance.

Many people weigh up comprehensive vs third party car insurance.

Although not required by law, you may consider purchasing comprehensive or third party insurance on top of your CTP insurance. If you’re responsible for a road accident, it can be very costly if you don’t have car insurance.

Third party fire and theft covers you for fire damage to your car, theft or attempted theft.

Comprehensive car insurance is the highest tier of car insurance. It covers accidental damage to your car or someone else’s property, the contents of your car and the theft or attempted theft of your vehicle.

What happens to CTP when you sell a car?

If your car is registered when you sell it, your CTP insurance automatically transfers to the new owner. You’ll receive a refund from your insurer when you hand in your plates and cancel your registration with the relevant government body for your state or territory, such as Service NSW.

Do you pay CTP before rego in NSW?

Yes. You must buy CTP insurance or a Green Slip before renewing or registering your vehicle. If you’re renewing your rego in New South Wales, you need to do it before your rego’s expiry date.

How do I claim CTP?

Making a CTP insurance claim varies state by state.

QBE’s insurance claims process is quick and easy. You can refer to your state or territory for further information using our CTP claims hub.

Does CTP cover personal injury?

Yes. CTP insurance, is a form of personal injury insurance.

Is CTP included in comprehensive insurance?

No. CTP insurance is a form of personal injury compensation required by law. Comprehensive car insurance is a separate piece of insurance cover.

If you want coverage for any accidental damage to your car or someone else’s property, you need comprehensive insurance in addition to CTP. Comprehensive can also cover the theft or attempted theft of your car, the contents of your car – whether they need to be repaired or replaced – and fire damage.

Still have unanswered CTP questions? Call us on 133 723 or fill out our online enquiry form.