CTP Insurance: Are you covered?

What is Third Party Car Insurance?

Compulsory Third Party Insurance covers compensation payments made to an individual who has suffered injuries arising from a motor vehicle accident.

Compulsory Third Party (CTP) insurance also covers payments made to individuals (often by-way-of Estate representation) who are killed in a car accident.

However, it doesn’t cover the cost of damaged vehicles or property. There are a set of circumstances and general policies worth considering when evaluating your ability to make a claim using compulsory third-party insurance.

1. Who is protected under CTP insurance?

In Australia, every owner of a motor vehicle must hold compulsory third-party CTP insurance. In Queensland and New South Wales, you must acquire compulsory third-party insurance prior to registering your car.

In contrast, CTP  insurance is included in the price of registration in Western Australia, Tasmania, Australian Capital Territory, South Australia, and Victoria.

The compulsory third-party car insurance is attached to the vehicle, as opposed to a driver. Therefore, if the injury of driver B was caused by a car accident that occurred due to the fault, or primary fault, of driver A, then driver B can make a claim to the CTP car insurance company of driver A.

In other words, insurance extends to any driver of the motor vehicle and protects any individual who may be injured following the motor vehicle accident caused primarily by the driver of this vehicle.

CTP insurance also covers any member of the community who may be injured or killed in an accident, such as pedestrians or cyclists.

2. What does CTP insurance cover?

Notably, CTP insurance does not protect any damage caused to your vehicles or property, nor will it cover any issues surrounding the theft of the vehicle.

CTP insurance will also not protect you from liability surrounding damage caused to other people's vehicles or property.

CTP insurance will, however, cover the injured person's damages which can include but are not exclusive of, loss of earnings, medical expenses, and future loss of earnings. CTP insurance can also cover emotional loss such as pain and suffering.

3. Can I claim CTP insurance?

Subject to the accident being of no fault, or minimal fault, to the injured driver or victim, the injured party may be able to procure compensation.

The correct procedure which needs to be carried out in order to facilitate whether a claim can be successful is as follows:

A. Police

Ensure to report the accident to the police and complete any relevant documentation within your State or Territory.

B. Fault

Identifying the vehicle at fault is imperative. If the injured party was the vehicle at fault, claims will become limited. However, if the injured party was not the vehicle at fault, then the procedure is relatively easy from this point onwards.

C. Discover CTP insurer

It is important that you receive the details of the driver at fault CTP insurer so that you can make a claim. In Queensland, the CTP insurer can be identified by completing a registration search of the vehicle at fault.

In other States and Territories, this process may differ. In NSW, for example, you can find the CTP insurer of the vehicle at fault via Service NSW Check registration.

D. Follow the insurer's guidelines

Each insurer will have a separate set (however similar) of guidelines that must be followed accurately and effectively. You may wish to contact our firm in order to ensure this process is completed easily.

E. Lodge the claim.

4. Common circumstances where CTP insurance can be claimed

There are many different circumstances in which CTP insurance claims can be made. The primary element to remember is that the injured or killed claimer must not be at fault, or primary fault, for the incident.

For example, if a driver fails to give way and drives through a pedestrian crossing, injuring a person, then the driver is at fault. The pedestrian can therefore make a claim.

Another common set of instances that allow for CTP insurance claims to be made involves cyclists and motor vehicle accidents. If a cyclist is hit by a vehicle, they may lodge a claim.