What is CTP Insurance?
Compulsory Third Party (CTP) Personal Injury Insurance, also known as a Green Slip in NSW and rego in ACT, is a compulsory insurance required for every vehicle in Australia.
It provides protection to the vehicle owner and ‘at fault’ driver, against compensation claims from people injured in a motor accident.
By having CTP Insurance, if people are injured in an accident you cause, the cost of all reasonable medical treatment will be covered.
Frequently Asked Questions
What does CTP stand for?
CTP is short for Compulsory Third Party Personal Injury Insurance and is commonly known as a CTP Green Slip in NSW and rego in ACT.
What does CTP Insurance cover?
CTP Insurance covers the vehicle owner and any person who at any time drives the vehicle, against claims for liability in respect of the death or injury to other people caused by the fault of the owner or driver.
It covers the cost of all reasonable medical treatment for injuries received in the accident.
Depending on the injured person's individual circumstances, cover may also include:
- loss of wages
- the cost of care services and
- compensation for pain and suffering
From 1 April 2010 CTP Insurance also provides cover up to $5,000 for an at fault driver injured in a motor accident.
What’s the difference between CTP, Third Party Car Insurance and Comprehensive Car Insurance?
When you need to compare car insurance, it can get confusing with everything from CTP and Third Party Car Insurance through to Comprehensive Car Insurance to consider.
But what’s the difference?
Well, Compulsory Third Party Insurance, often referred to as CTP or Green Slip in NSW and rego in ACT, is designed to help cover the medical costs of people injured in a road accident they didn’t cause. Think of it as insurance for people. In most states it’s included in your registration but in NSW or ACT you choose your CTP provider.
Third Party Car Insurance or Third Party Property Damage as it’s officially known by GIO, covers damage your car causes to other vehicles and property. It only covers damage to your car (up to $5,000) if you’re in a collision with an uninsured at-fault driver. With GIO, you can also choose Fire, Theft and Third Party Property Damage Car Insurance which is similar to Third Party but comes with extra cover for your car against fire and theft.
The next level of protection is Comprehensive Car Insurance which covers damage to your car, as well as damage your car causes to other vehicles and property.
With GIO, you can also choose Platinum Car Insurance which has all the benefits of Comprehensive Car Insurance plus extra features included as standard like unlimited days hire car, windscreen cover and lifetime new car replacement.
Looking for more detail? Compare our Car Insurance products now.
What’s included in the cost of a CTP Green Slip in NSW?
Included in the cost of a CTP Green Slip is the Medical Care and Injury Services Levy. The MCIS is a levy that covers the cost of providing the Lifetime Care and Support Scheme (LTCS) and State Insurance Regulatory Authority (SIRA) costs. It also includes a contribution for ambulance and hospital costs, and other services for people injured in motor vehicle accidents.
The Lifetime Care and Support (LTCS) scheme provides benefits to people catastrophically injured in a motor vehicle accident. The scheme is not fault based so assistance is available regardless of who caused the motor vehicle accident in which they were injured.
The scheme provides lifelong treatment, rehabilitation and attendant care for people who have a spinal cord injury, a moderate to severe brain injury, multiple amputations, serious burns or blindness from a motor accident in NSW. It does not provide a lump sum payout.
Compulsory Third Party Insurance DOES NOT cover damage to property, including vehicles.
If you’re looking to protect your car from damage, see our Car Insurance products.