Compulsory Third Party (CTP) personal injury insurance covers injury caused to third parties when you or the person driving your vehicle is the driver at fault in an accident. Third parties include your passengers and other road users, such as drivers, passengers of other vehicles, pedestrians, cyclists, motor cyclists and pillion passengers. Your CTP insurance also covers you for injuries caused through the use of a trailer.
CTP insurance does not cover damage to property or other vehicles. Under the NSW CTP Scheme, your CTP Green Slip also does not cover injuries sustained by you if you are the at fault driver in an accident.
If you suffer injuries as a result of a motor vehicle accident and it is shown that another driver was ‘at fault’, you may be entitled to make a claim for damages against the other driver’s CTP insurance policy. If, however, you are the driver at fault in the accident, you will not be entitled to claim any benefits under the NSW CTP Scheme. However, if your injuries are severe, you may be entitled to make a claim under the government’s Lifetime Care and Support Scheme. For more information on the eligibility requirements of this Scheme, visit www.lifetimecare.nsw.gov.au. Alternatively, for severe injuries, you may be entitled to a lump sum benefit under the Allianz At-Fault Driver Protection Insurance policy.
The Motor Accidents Authority (MAA) regulates the CTP market and has issued seven licenses to insurers for the sale of CTP in NSW. CTP insurance is defined by the Motor Accidents Compensation Act 1999 and, as such, coverage provided by all insurers is essentially the same although some insurers may offer At-Fault Driver Protection as an additional benefit to their policy holders. The MAA prescribes a number of factors that all insurers must apply when setting their premiums. Insurers can supplement these factors with additional criteria that are deemed appropriate to determining appropriate premium levels. These factors include:
the location in which the insured vehicle is garaged
your driving history
the age of all drivers of your vehicle
the age of your vehicle
the type of vehicle being insured
the purpose for which your vehicle is used
your entitlement to claim an Input Tax Credit on your CTP premium
The MCIS Levy first appeared as a separate item on Green Slips in 2006 with the introduction of the Lifetime Care and Support Scheme. This scheme covers the costs of medical care, treatment, rehabilitation, attendant care and support for life to anyone suffering certain catastrophic injuries such as severe spinal cord and/or traumatic brain damage as a result of a motor vehicle accident. These benefits are payable regardless as to whether the injured person was at fault or not.
The MCIS Levy also includes a contribution for ambulance, hospital and other services for people injured in a motor vehicle accident. These costs have always been included in your Green Slip premium.
The MCIS Levy is determined by the Motor Accidents Authority and is calculated as a percentage of the base premium charged by the CTP insurer. The MCIS Levy is GST free. For further information, visit www.lifetimecare.nsw.gov.au.
Since 2003, customers that use their vehicle as part of a GST registered business have been able to claim back the GST portion of their CTP premium from the Australia Taxation Office as an input tax credit (ITC) when lodging their business activity statements. Due to different tax treatments, the cost to the insurer of claims made by ITC entitled customers is higher than that for customers who are not entitled to an ITC. For this reason, CTP insurers charge a higher premium to GST registered customers that are entitled to an ITC. If you are registered for GST purposes and are able to claim the input tax credit on the premium, you must answer “yes” to the question “Is anyone entitled to claim an input tax credit on this vehicle?” This is the case even if you do not intend to claim the input tax credit. For further information contact www.ato.gov.au or speak to your taxation advisor.
Your CTP Green Slip will cover your vehicle as long as it is registered. To cancel your Green Slip, you must first cancel your registration with the Roads and Traffic Authority (RTA). Once deregistered, the RTA will provide you with a letter which can be used as proof that your vehicle’s registration has been cancelled. Once this letter is provided, your CTP insurer can then process your policy cancellation and refund any unused portion of the premium.
If your vehicle is deregistered due to a total loss or having been stolen, we will refund any unused portion of your CTP premium less a processing fee once we have been provided with proof of deregistration.
You may only change your CTP insurance provider at the commencement of each registration period. Once your CTP Green Slip has been used to register your vehicle, the only way that you will be able to change insurers is by cancelling and re-establishing your registration (see “How do I cancel my CTP policy?”).
Yes. Provided your vehicle is registered in NSW, your Allianz Green Slip covers you for injuries you might cause to other road users 24 hours a day, Australia wide. The amount of compensation payable depends on the law in the state where the accident occurs.
Since November 2008, the RTA has made 6 month terms available to registrations that are renewed on-line. While the RTA will be expanding the availability of on-line registration renewals over time, not all vehicle types are currently eligible for 6 month registrations. We recommend that you visit www.rta.nsw.gov.au to verify your eligibility prior to purchasing a 6 month CTP policy. If you are eligible to renew your registration on-line and would like to change the duration of your CTP renewal from 12 to 6 months, call us on 131 000 prior to paying for your CTP renewal.