Frequently asked questions
What is CTP insurance?
CTP insurance indemnifies vehicle owners and drivers who are legally liable for personal injury to any other party in the event of a motor vehicle accident. Your CTP insurance will cover you for personal injury caused by, through or in connection with the use of the insured vehicle in incidents to which the Motor Accident Insurance Act 1994 applies. It will cover you for claims made against you by other road users such as drivers, passengers, pedestrians, cyclists, motorcyclists and pillion passengers.
What does third party mean?
There are three parties to CTP. The first party is the owner/driver of the vehicle 'at fault'. The second party is the CTP insurer of the vehicle 'at fault'. The third party is the injured person.
Does CTP insurance cover damage to property or other vehicles?
No. CTP insurance only covers personal injury to another party where a legal liability can be established.
What if I don't have CTP insurance?
CTP insurance is compulsory and a condition of motor vehicle registration. If an accident occurs involving a vehicle without registration and CTP insurance, the driver and owner may be financially liable for the damages paid to the injured person. In addition, owners and drivers of unregistered vehicles face hefty fines.
What rights do I have if I'm injured in an accident?
An injured party may claim compensation from the CTP insurer of the owner/driver of the 'at-fault' vehicle provided negligence can be established. You can still claim if you were partly at fault, but the compensation you are entitled to may be reduced. You cannot make a claim if you:
were the driver and totally at fault; or
no-one was at fault.
Who pays if I'm injured and there is no 'at-fault' vehicle?
You will need to rely on sick leave, social security, Medicare and the public health system, unless you have other personal injury insurance and/or private health insurance. Motorists, particularly drivers, should consider having some form of personal insurance to cover those situations where they are the 'at fault driver' or no-one is at fault for the accident. Insurers may offer limited additional benefits of at-fault driver cover for serious injuries or death. (Contact each insurer for details on policy coverage and exclusions.)
Is CTP insurance good value?
Yes. Unlike many other types of insurance, CTP provides unlimited indemnity to the insured. Benefits paid to the injured party depend on the extent of the injuries and can include the cost of ambulance, hospital and medical treatment, rehabilitation, loss of income and long-term care. Limits may apply with respect to loss of income (the upper limit being three times average weekly earnings per week) and limits may apply in certain circumstances regarding the payment of legal costs.
Who sets the CTP premiums?
As from 1 October 2000, licensed CTP insurers determine premium rates every quarter within an upper and lower limit set by the Motor Accident Insurance Commission.
See Current premium rates for more information.
Can I change my CTP insurer?
Yes. See Changing Insurer for more information.
What should I do if I'm injured in an accident?
See Claims Information for more information.
Do GST credits apply to CTP?
See GST and CTP insurance for more information.
Last reviewed 9 January 2012