What does compulsory third party (CTP) insurance cover?

Compulsory third party (CTP) insurance can cover the following scenarios:

You cause an accident that injures or kills someone else

CTP insurance protects you against compensation claims made against you (or the driver of your vehicle) for injuring or killing other road users in an accident that was wholly or partially your fault.

Instead of you paying the compensation – including treatment, rehabilitation and care costs; income-support payments; and/or funeral expenses – your CTP insurer pays it.

Someone else causes an accident that injures or kills you

If you’re injured or killed in an accident caused entirely or partly by someone else, you (or your dependants) can claim compensation from that person’s CTP insurer.

If you were partly at fault for causing your injuries (e.g. you were speeding or not wearing a seatbelt), you may still be eligible for compensation, however the amount may be less than if you were blameless.

You cause an accident that injures or kills you

If you’re injured or killed in an accident you caused, your ability to claim compensation will depend on whether the state or territory in which your car is registered has a fault-based or no-fault CTP insurance scheme.

For example, at-fault New South Wales and Victorian motorists can apply for compensation (limits and exclusions apply), whereas at-fault Queensland and West Australian drivers may not be able to (unless they’re catastrophically injured). 

An uninsured or unidentified person causes an accident that injures or kills you

In some states and territories, such as New South Wales and Queensland, you (or your next of kin) can apply for compensation if you’re injured or killed in an accident caused by someone driving an unregistered vehicle or who can’t be identified (i.e. a hit and run).

The claim is made through a ‘nominal defendant’, typically a CTP insurer assigned to the case by the state’s CTP scheme regulator.

Budget Direct offers CTP, or green slip, insurance to New South Wales residents only; for more information, visit our ‘NSW CTP Insurance’ web page.

If you live outside of NSW, you can get more information from your CTP insurer or the CTP insurance regulator/administrator in your state or territory.

What does CTP insurance not cover?

Compulsory third party (CTP) insurance, which is a form of personal injury insurance, does not cover loss or damage to property, including your and other people’s motor vehicles and homes.

What does New South Wales CTP insurance cover?

If you’re injured (physically or psychologically) or killed in a car accident on or after 1 December 2017, you or your next of kin respectively may be eligible for the following benefits:

If you’ve been injured in a motor accident, you may be eligible for …

Personal injury benefits

Income-support payments and medical and rehabilitation expenses while you recover – even if accident was your fault. Read more

Lump-sum compensation

 

Compensation for damages from the at-fault driver’s CTP insurer – if the accident was not your fault and you have more than a minor injury. Read more

If you are a ‘legal personal representative’ (e.g. next of kin) of someone who has died in a motor accident, you may be eligible for …

Funeral expenses

Funeral director’s fees, service (cremation or burial), coffin, mourning car, cemetery site and other expenses. Read more

Compensation for relatives

Compensation –  if you were dependent (financially and/or for some service) on your deceased  relative. Read more

At a glance

 

Personal injury benefits

Lump-sum compensation

Funeral expenses

Compensation for relatives

Injured – regardless of fault

Yes

Seriously injured – not at fault

Yes

Yes

Killed – regardless of fault

Yes

Yes

To confirm your eligibility for compensation and arrange a telephone consultation between you and a lawyer, please call CTP Assist on 1300 656 919.

If your accident happened in NSW before 1 December 2017, please visit the relevant State Insurance Regulatory Authority web page.

How much compensation will I receive from my CTP insurer?

CTP insurance compensation amounts are dependent on a number of factors.

In New South Wales, for example, the amounts are conditional on, among other things:

  • the extent of your injuries
  • whether or not the accident was mostly your fault
  • your family’s circumstances.

For more information, contact your CTP insurer or the CTP insurance regulator/administrator in your state or territory.

Who does CTP insurance cover?

CTP insurance covers road users injured or killed in road accidents that were not their fault, including:

  • drivers and passengers
  • riders and pillion passengers
  • pedestrians
  • cyclists.

If a person dies in an accident, their dependent relatives may be eligible for compensation.

Some states and territories also allow at-fault drivers (or their next of kin) to claim compensation for their injuries or death (unless they’re charged with a serious driving offence in connection with the accident).

Does CTP insurance cover me if I’m injured or killed in an accident I cause?

If you’re injured or killed in an accident that was your fault, you or your dependants’ ability to claim compensation will depend on whether the state or territory in which your car is registered has a fault-based or no-fault CTP insurance scheme.

For example, at-fault New South Wales motorists may be eligible for up to six months of cover for medical and rehabilitation expenses and income-support payments (unless they’re charged with a serious driving offence in connection with the accident, e.g. drink driving).

In contrast, Queensland drivers who are to blame for an accident may not qualify for compensation (unless they’re catastrophically injured).

Instead, they may have to rely on sick leave, unemployment benefits, family support, Medicare and/or private health insurance, and – if they have it – income protection and/or life insurance.

For more information, contact your CTP insurer or the CTP insurance regulator/administrator in your state or territory.

Does CTP insurance cover me anywhere in Australia?

Regardless of the state or territory in which your vehicle is registered, your CTP insurance covers you no matter where in Australia you drive your car or ride your motorbike.

If you’re driving or riding interstate and you cause an accident and injure or kill someone, they (or their next of kin) can apply for compensation from your CTP insurer.

If you’re injured or killed in an accident you cause, your eligibility for compensation will depend on whether your state has a fault-based or no-fault CTP insurance scheme.

It will also depend on the circumstances surrounding the accident. For example, if you were doing something illegal (e.g. driving an unregistered car or driving under the influence of alcohol or drugs), you may not qualify for compensation.

Does CTP insurance cover vehicle damage?

No – CTP, a form of personal injury insurance, does not cover damage to your or other people’s vehicles.

To get that sort of cover, you’ll also need to take out comprehensive car insurance.

Does CTP insurance cover the other car?

No – CTP, a form of personal injury insurance, does not cover damage to other people’s vehicles for which you’re liable.

To get that sort of cover, you’ll also need to take out third party car insurance or – if you want cover for damage to other people’s vehicles as well as yourscomprehensive car insurance.

Is CTP insurance enough cover?

It’s up to you to decide whether compulsory third party (CTP) insurance is all you need for your vehicle.

Bear in mind that CTP is a form of personal injury insurance, so it does not cover loss or damage to your or other people’s vehicles.

Perhaps your vehicle has a low market value and you’re not overly worried about the cost of repairing or replacing it?

Regardless, if you cause an accident but you have only CTP insurance, you’ll be personally liable for any damage to other people’s vehicles.

You’ll be required to pay for:

  • the reasonable cost to repair the other person’s damaged vehicle or the market value of the vehicle (whichever is the smaller amount)
  • towing costs
  • demurrage (hire-car costs, lost wages or profits for income-earning cars).

You can avoid these hefty costs by also taking out Budget Direct third party car insurance or – if you want cover for damage to other people’s vehicles as well as yourscomprehensive car insurance.

Does CTP insurance cover property damage?

No – CTP, a form of personal injury insurance, does not cover loss or damage to property, including your car and other people’s vehicles, homes, and other property.   

To get that sort of cover, you’ll also need to take out comprehensive car insurance.

Does CTP insurance cover any driver?

All state and territory CTP insurance schemes cover accidental deaths and injuries to not-at-fault drivers and other road users.

However, only some of the schemes cover deaths and injuries to at-fault drivers (unless they’re charged with a serious driving offence in connection with the accident).

Indeed, there are two broad types of CTP schemes in Australia:

Fault-based scheme: The driver who caused the accident (or their next of kin) is not eligible for compensation for their injuries (unless they’re catastrophically injured) or death.

No-fault scheme: The driver who caused the accident (or their next of kin) is eligible for compensation for their injuries or death (limits and exclusions apply).

To find out which of these schemes applies in your state or territory, see the table below:

State/territory Type of CTP scheme
Australian Capital Territory Fault-based
New South Wales No-fault
Northern Territory No-fault
Queensland Fault-based
South Australia Fault-based
Tasmania No-fault
Victoria No-fault
Western Australia Fault-based

For more information, contact your CTP insurer or the CTP regulator/administrator in your state or territory.

Does CTP insurance cover theft?

No – CTP, a form of personal injury insurance, does not cover theft of your vehicle.

To get that sort of cover, you’ll also need to take out comprehensive car insurance or third party, fire and theft car insurance.

What is ‘at-fault driver cover’?

Traditionally, CTP insurance schemes have compensated not-at-fault drivers (and other road users) injured or killed in motor accidents – but not at-fault drivers (unless they’re catastrophically injured).

In states with more than one CTP provider, insurers have sought to gain a competitive edge by also offering optional ‘at-fault driver cover’ (also known as ‘at-fault driver injury insurance’).

While some insurers still offer this optional cover, it’s less critical in those states and territories that have replaced their ‘fault-based’ CTP insurance schemes with ‘no-fault’ ones.

For example, following reforms to the New South Wales CTP scheme in 2017, at-fault drivers who suffer any type of injury are now eligible for up to six months of cover for medical and rehabilitation expenses and lost income.

For more information, contact your CTP insurer or the CTP insurance regulator/administrator in your state or territory.

How do I make a CTP insurance claim?

CTP insurance claim processes vary according to the state or territory in which your car is registered.

For more details, contact your CTP insurer or the CTP insurance regulator/administrator in your state or territory.

Budget Direct provides CTP insurance to New South Wales residents only.

Read more about NSW CTP green slip insurance claims

Does CTP insurance cover motorbikes and larger, commercial vehicles, like trucks?

Yes – all registered vehicles in Australia are covered by compulsory third party (CTP) insurance.

Does CTP insurance cover death?

If you’re killed in a motor accident that was not your fault, your CTP insurer may cover the funeral expenses and compensate any relatives who were dependent on you financially or for some service at the time of your death.

If you’re fatally injured in a crash you caused, your eligibility for compensation will depend on whether the state or territory in which your car is registered has a fault-based or no-fault CTP insurance scheme.

Under the New South Wales scheme, for example, the next of kin can apply for funeral expenses and – if they were financially or physically dependent on the deceased – lump-sum compensation.

This is unless the deceased was doing something illegal when they caused the accident (e.g. driving an unregistered car or driving under the influence of alcohol or drugs), in which case their next of kin may not qualify for compensation.

For more information, contact your CTP insurer or the CTP regulator/administrator in your state or territory.

Does CTP insurance cover funeral costs?

If you’re killed in a motor vehicle accident that was not your fault, your CTP insurer may cover your funeral expenses.

If you’re fatally injured in a crash you caused, your next of kin’s ability to claim these expenses will depend on whether the state or territory in which your car is registered has a fault-based or no-fault CTP insurance scheme.

If your vehicle is registered in New South Wales, for example, your loved ones can apply for funeral expenses – such as funeral director, coffin, and burial or cremation costs – regardless of whether you caused the accident.

For more information, contact your CTP insurer or the CTP regulator/administrator in your state or territory.

Does CTP insurance cover dependants / relatives?

If you die in a road crash that was not your fault, any relatives who depended on you financially and/or for some service may be eligible for compensation, and funeral expenses, from your CTP insurer.

If you die in a motor accident you caused, your next of kin’s ability to claim will depend on whether the state or territory in which your car is registered has a fault-based or no-fault CTP insurance scheme.

For example, New South Wales’ no-fault scheme allows the deceased’s dependent wife, husband, parent or child to make a claim even if their departed loved one caused the accident.

For more information, contact your CTP insurer or the CTP insurance regulator/administrator in your state or territory.

Does CTP insurance cover injuries caused by a trailer?

Whether your CTP insurance covers injuries (or deaths) caused by your trailer will depend on whether the state or territory in which your car is registered has a fault-based or no-fault CTP insurance scheme.

In New South Wales, for example, drivers of vehicles towing roadworthy trailers are covered for any injuries the trailers cause to other road users.

For more information, contact your CTP insurer or the CTP insurance regulator/administrator in your state or territory.

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