What does Compulsory Third Party Insurance Cover?

A car is one of the most valuable assets you can own. Thought you might not want to insure it, is required by law that you purchase CTP (compulsory third-party) insurance as part of the vehicle registration procedure. Are performing this as a procedure all you know what it covers? It is imperative that when you purchase insurance, you understand and know what and who is protected. In our article below, we will help you learn who is covered by CTP insurance.

People injured in an accident

If you own an insured motor vehicle and it gets into an accident, CTP insurance cover or offers compensation any person injured during the crash. It will cover the medical bills for these people easing the financial burden off your chest. Even if the injured person was a cyclist, pedestrian, driver, or a passenger, he is protected by compulsory third party insurance. The CTP insurance you are obligated to purchase covers the third party (the people injured) due to an accident that is considered your fault.

Vehicle owner

In case your car gets into an accident, CTP insurance protects you against liability claims due to the injury caused to anyone who might have been involved in the crash. In case people die during the accident, the insurance covers you against such claims.


Are you worried about the driver or anyone who might use your car and end up causing an accident? If this happens, CTP insurance coverage protects your driver and any other individual who might drive the vehicle.  If a driver causes an accident, he is covered against any claims related to damages and losses which might be as a result of the collision.

What is not included?

Compulsory Third Party insurance does not protect your property against damages. If your vehicle is damaged during an accident, it will only be covered if you have extra cover. Damages to other peoples’ property or vehicles are not covered. Additionally, CTP insurance does not cover the theft of your vehicle. In case your car is stolen or want to insure your vehicle against such incidents, you will have to purchase extra coverage.


How are the benefits determined?

After you or any other person gets into an accident, he would want to get compensation. The amount you or the injured person gets, and the duration of time taken to receive payment, depends on the condition of the injured individual. You can decide to negotiate the amount with your insurance provider or allow the court to be a determinant. So, don’t go quoting the exact amount that you want,


When purchasing or registering your vehicle, ask your insurance provider about what is covered and not covered by your CTP. Find out if you can buy an extra policy to cover for damages to your vehicle or other people’s property. Some lawyers can be hard-headed, if you find it hard discussing compensation amounts with your insurer, ask your lawyer to represent you.

Questions you should ask when purchasing Compulsory Third-Party Insurance

Do you have an unregistered vehicle? Do you have any question you would want to be answered? We went ahead to respond to some of the CTP insurance questions that you should ask before purchasing the insurance. Read below to learn more.

What is CTP insurance?

This is insurance that you pay together with your vehicle registration and covers you from damages claim in case you or any person driving your motor is involved in a motor vehicle accident. It offers compensation for the injured or killed person.




I’m I covered if I drive outside my state?

You shouldn’t worry about this. Although your vehicle is registered in your state, your cover protects irrespective of where you are operating in Australia.

Does CTP cover vehicle or property damage?

Compulsory Third Party insurance does not cover any damage to vehicles or property. However, if you need to have protection for damages to your car, you can buy comprehensive insurance separately.

What does it cover?

CTP insurance offers compensation for people killed or injured when a car is involved in an accident. It protects the owner of the vehicle and anyone who at any time drives the motor vehicle, against claims for liability related to the injury or death of other individuals caused by the driver’s or owner’s mistake. The driver of the car causing the damage is being secured against claims for the losses and damage caused.

Can I find cheap CTP insurance?

The answer to this query can be either yes or no depending on where you live. Keep in mind different states have a different requirement as well rates. To find out lowest prices that you can avoid, carry out a thorough research in your state and compare the quotes. Therefore based on your state, you can easily find affordable CTP insurance.


What happens when I sell my motor vehicle?

It is necessary to note that CTP is attached to the motor vehicle and not you (the owner). In the event, you decide or sell your car, bear in mind that the CTP will be transferred to the new vehicle owner. It only means, if you buy another car, you will not be covered by your old vehicle’s CTRP insurance. The same case applies to getting a refund. By now, it is evident that you will not receive a refund if you sell the vehicle. The reason is also the same; the compulsory third-party insurance will be transferred to the then listed owner.

Is it possible to change insurers?

Yes.  You are free to change insurers. For example, if your present insurer sends a renewal notice, it is not compulsory that you renew your CTP insurance with them. If you are not satisfied with rates or services offered by your insurer, you can change.


Now that you have the answers to these questions which might have been troubling you, we hope you will not drive an uninsured vehicle. We also hope this article has answered all your CTP insurance issues.

How to file a CTP claim

An accident can happen any time. Whether it is at midnight or during the day, you get into an accident. And even if you are careful, you will still at one point in your life get an accident. When this happens, and you have third party compulsory insurance, you will need to file a claim. Do you know how to do this? Have you filed one before? If you have no idea about this process, keep in mind that there are procedures to follow and some forms to fill. Read our informative article to learn about this in advance.

Inform the police

Apparently, you are not going to phone your insurer at this critical moment. What is the need of telling your insurer if he can’t give you the help? Inform the police is a legal requirement in all countries across the world. The police will examine the area of the accident and file their report. After that, you will need to get the crash reference number from the corps. Ensure that you report the accident in person, (if you were driving the vehicle).

Get the number of the other vehicle

The registration number of the other vehicle that led to the accident will be required as you process the claim. It is necessary you record it and if you can’t, ask someone of may be around to do it for you. If they were more than one, obtain their registration numbers also.

Get medication

It is possible that you have injuries after the accident. Go to the hospital to get medication and if you are not able, call an ambulance. If there are several people involved, take them to the hospital as well.  Any payments you make to the hospital ensure you ask for the receipts and keep them safe. It will help when calculating the amount you will get from your insurer. It can be hard for your insurance provider to believe anything you say if there is no proof.

Call your insurance

You are now okay or in a good state to call your insurer. You have their contact, right? Inform them about what happened where and how it happened. Answer all their questions and if there is a need to prove the information you provide, do so without hesitation. And of course, your insurance provider is going to ask to inspect the area of the accident or verify the information.

Fill the claim form

After your CTP insurer verifies the information, you will be given the application form to fill. Make sure you fill them correctly without missing any detail. If you miss a detail, your claim may not push through and appear suspicious. Ensure to attach some copies or receipts if there is a need. Send the forms back without any delays.


If you delay sending back the forms, your payment will be delayed as well. Making a claim is not just about filling the forms and sending them back, but about being truthful. Remember you have a limited period to file your claim.