Since 2009, the NSW CTP Greenslip 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 and further information regarding this cover can be found here.
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. Firstly, as its name implies, it is compulsory because you need it to register your vehicle. Secondly it protects the Third Party for 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. 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.
A CTP Greenslip does not cover you for any Property Damage, your own 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.