CTP and MAI Insurance: what do they cover? 

Compulsory Third Party (CTP) Insurance in NSW and Motor Accident Injuries (MAI) Insurance in the ACT both provide cover for people who may be injured or killed in a motor vehicle accident involving your vehicle. This may include the driver of your vehicle, other drivers, passengers, pedestrians, cyclists and motorcyclists. In other states and territories, the person driving your vehicle may not be covered, depending on the accident circumstances.

Though CTP and MAI Insurance are compulsory in Australia, it’s still a good idea to be aware of what you’re covered for, and whether you need additional forms of motor vehicle insurance cover.

Why are CTP and MAI Insurance compulsory?

CTP and MAI Insurance are designed to cover people who may be injured or killed in a motor vehicle accident. It’s a way to look out for each other, and to account for the enormous expense any legal liability can turn into.

In NSW, CTP insurance is also known as a Green Slip, and must be purchased from an insurer before you register your vehicle. In other states and territories, CTP or MAI Insurance is included in the cost of your vehicle registration.

What happens if I don’t get CTP or MAI Insurance?

If you choose to drive without CTP or MAI Insurance or without registering your vehicle, you may be picked up by traffic cameras or even fined by the police. If you are ever involved in an accident, you could be financially liable for any costs or damages paid to injured parties. By getting CTP or MAI Insurance, you not only make sure you’re doing the right thing by your community, but can also prevent further stress and burden should your vehicle ever be involved in an accident. 

What isn’t covered by CTP or MAI Insurance?

It’s crucial to bear in mind that CTP and MAI Insurance only covers injuries to people. They don’t cover the cost of damaged vehicles and property, or the loss of your vehicle. This means it’s well worth thinking about other forms of car insurance as well. For the confidence of knowing your car and property are covered in an insured event, consider Comprehensive Car Insurance or Fire, Theft and Third Party Property Damage cover.

Before deciding on a policy, make sure to read up on the Product Disclosure Statement (PDS) as well.

Are CTP and MAI Insurance the same everywhere in Australia?

While it’s compulsory in all states and territories to have CTP or MAI Insurance for your vehicle, there are differences. For example, in New South Wales you’ll need to choose your own CTP insurance provider and purchase your insurance prior to registering your vehicle. In other states and territories, your CTP or MAI Insurance cost will be included in the total cost of your vehicle registration.

In some places, such as the ACT, you can choose your MAI insurer when you renew your vehicle registration, and you may find the total cost of your vehicle registration will vary depending on the insurer you go with.

Know your cover

CTP and MAI Insurance certainly aren’t something you should take for granted just because they’re compulsory. Stay on top of what your policy includes so you understand what you are covered for. 

More about CTP Insurance

More about MAI Insurance


Read more:

Related links

Insurance is issued by AAI Limited ABN 48 005 297 807 AFSL 230859 (AAI) trading as GIO. Read the relevant Product Disclosure Statement before buying this insurance.

This advice has been prepared without taking into account your particular objectives, financial situations or needs, so you should consider whether it is appropriate for you before acting on it.