What Is The CTP Green Slip & What Does It Cover?

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Compulsory Third-Party Insurance, also known as CTP or a Green Slip, is insurance that is required for all New South Wales drivers and their vehicles. A vehicle cannot be registered, or have its registration renewed, sans this type of insurance.

What Is CTP Insurance?

CTP insurance is a form of third-party insurance. This type of insurance covers the following individuals who might be injured or killed as the result of a motor vehicle accident:

  • The owner of the car if they are injured while driving in NSW Australia.
  • Pedestrians, other drivers, passengers, bicyclists and motorcyclists.
  • If the owner of the vehicle is injured outside of NSW, the place of injury will control their coverage.

CTP insurance provides liability insurance for the following drivers;

  • Your liability if you injure or kill someone during the course of operating your motor vehicle.
  • The liability of someone who is driving your car and is involved in an accident that injures or kills another individual.

What Does CTP Insurance Cover in Addition to Liability?

In the event that you, or one of the named persons above, is injured as a result of an accident that occurred while you or another was operating your motor vehicle, the injured or deceased person will be entitled to benefits. These benefits are available for twelve months (12) from the date of the accident and can include;

  • Medical Expenses incurred as a result of the accident. These can include emergency room services, doctors’ visits, physical therapy, occupational therapy and rehabilitation needs, in general.
  • Prescription costs incurred as a result of being injured.
  • In-home care attendants during the recovery period.
  • A percentage of your pre-injury income in the event that you lose time from work.

If the accident involves the death of a third person the following may be covered;

  • Funeral expenses; included but not limited to funeral home/director services, flowers, coffin, public announcement of the death, burial plot.
  • Transportation to their home area if they resided outside of NSW.

What Does CTP Insurance NOT Cover?

  • Most importantly, CTP insurance does not cover a driver who was at fault for the accident. While some insurance companies will provide this type of coverage, you cannot assume that your CTP policy does. Therefore, it is important to inquire with your insurance agent as to the extent of your CTP coverage should you be at fault for an injury or death of a third person, while operating your motor vehicle.
  • CTP can cover an at-fault driver if they are injured in a catastrophic manner. To determine the extent of this coverage, we strongly encourage you to inquire with your insurance agent for the specific details and benefits contained within your policy.
  • CTP also does not cover damage to your vehicle or the vehicle of the other driver. It also does not cover property damage of the injured party. For example, if you hit a pedestrian who was carrying a very expensive item and the item was damaged as a result of the pedestrian dropping it, the item’s value would not be covered.

While it is preferable to never have to face a tragedy such as a third-party injury while operating your vehicle, it is also necessary to procure the proper CTP-Green Slip insurance in NSW. It is only through this type of insurance policy that you will be allowed to register your vehicle in NSW Australia. In addition, CTP insurance provides some peace of mind should an accident of this nature occur.

In the event that you find yourself in need of assistance, please contact the law offices of Owen Hodge Lawyers. At Owen Hodge, we are always happy to assist clients in understanding the full ramifications of any and all of your legal needs. Please feel free to call us at your earliest convenience to schedule a consultation at 1800 770 780.



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