The difference between CTP and comprehensive insurance

When you receive your car registration notice, you may notice a sum is allocated to
compulsory third party (CTP) insurance, many people wonder why this is on a
registration notice.
Do you know why you need CTP insurance when you are already paying for
comprehensive car insurance or third party property insurance?
And do you know what happens if you do not pay your car registration, (therefore not
paying your CTP insurance) and are involved in a car accident which causes death or
injury to another person?
In this article we have explained the different types of insurance and why you need them
CTP Insurance
As the name suggests, CTP insurance is compulsory, and for good reason.
CTP insurance is often called “green slip insurance” because of the green slip you need
to obtain to register your vehicle.
CTP is an insurance policy that provides you or the driver of your car with unlimited
liability for death or injuries caused by you/your car’s driver to anyone killed or injured by
your vehicle. It does not cover damage to any other vehicle or property.
The period of cover of your CTP insurance matches the period of the car’s registration.
Consequences for driving an unregistered vehicle
If your car is not registered and causes injury to another person, you are liable to
criminal penalties and will be uninsured for injuries caused to third parties.
If your car is not registered and causes injury to another person, then a State body
known as the Nominal Defendant will step in and compensate the injured person.
The Nominal Defendant then has the right to recover from the driver of your vehicle any
compensation that it has paid to the injured person.
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Depending on the extent of the injuries caused to the injured person, the driver of an
unregistered car at fault could face a repayment to the Nominal Defendant of many tens
or hundreds of thousands of dollars.
Therefore, it is crucial for all drivers to insure against third party injuries by ensuring that
their car registration is paid.
Comprehensive Car Insurance
Comprehensive car insurance is an insurance policy that provides cover for both your
car and other people’s vehicles and property.
Third party property insurance provides cover for any damage you or your driver may
cause to other people’s vehicles and/or property.
Ordinarily, neither comprehensive car insurance nor third party property insurance has
anything to do with compensation for any injuries sustained by any person.
Need help?
If you have been injured in a motor vehicle accident or know someone who has and
want to find out more about CTP insurance or making a claim, call us on 6 9191 9293 or