What does CTP cover? While all drivers in NSW are required to have CTP insurance, you may not be aware of what it covers and for who. Let’s break down what CTP green slip cover is, why you need it, and what it covers you for.
What Is A CTP Greenslip
A CTP Greenslip is a compulsory policy of insurance that is required in order to register your vehicle with the New South Wales Roads and Maritime Services (RMS). A registered vehicle allows you to use your vehicle on any road or road-related area anywhere in Australia.
CTP is short for Compulsory Third Party. As its name implies, it is compulsory insurance for all drivers registered in New South Wales. You need CTP to be able to register your vehicle and drive within this state.
What Does Green Slip Cover?
CTP insurance or a green slip protects the Third Party from a personal injury in the event of an accident. Your CTP Greenslip, therefore, protects the general public against Third Party personal injury. Third Parties can best be described as other road users, pedestrians as well as passengers in your own vehicle.
This coverage encompasses a few things. First is a liability. You and the other people who drive your vehicle will not be liable for any injuries caused to others in a road accident that involves your vehicle.
The second is medical expenses. If the third party is injured as a result of a road accident involving your vehicle claims for medical expenses, can be costly without CTP. Your CTP provider will cover those expenses, which can include up to six months of treatment and other types of medical care.
The third thing is payment for lost income. This allows injured parties who aren’t at fault in the accident to claim lost income. This will usually cover a percentage of your weekly income as it was before your injury.
What CTP Insurance Doesn’t Cover
At-Fault Drivers
It is important to note that CTP does not generally cover the “at fault” driver of the vehicle, i.e. the first party. If you are a not-at-fault driver injured in a road accident, then you are the third party and are therefore covered by the “at fault” drivers’ CTP policy.
Some insurers do provide minimal cover for at-fault drivers in the event of an injury. Depending on the insurer, this is often called At-Fault Driver Protect / Cover. Details of this minimal cover can be found here.
Since 2009, the NSW CTP Greenslip has provided cover for the driver at fault when injured catastrophically. This benefit is described as Lifetime Care and is governed by the Lifetime Care & Support Authority. Further information regarding this cover can be found here.
Property Damage
A CTP Greenslip does not cover you for any Property Damage, whether that is damage to your vehicle or damage to other vehicles/property. This means that if you have an accident and your vehicle is damaged, CTP insurance will not apply.
The policy that would respond is your Motor Insurance policy – Comprehensive Motor Insurance policy for both First Party and Third Party property damage or Third Property Property Damage (TPPD) for Third Party property damage only. A TPPD policy is taken out by those who do not want to insure their own car for property damage. Motor Insurance in Australia is not compulsory for road users.
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