Compulsory Third Party (CTP) insurance, otherwise known as Greenslip insurance, covers you with financial security in the event of third-party compensation claims. Greenslip insurance is your protection from medical costs, salary repayments, and other forms of compensation should your vehicle injure someone.
As a driver, if you or someone driving your car injures or kills someone in a traffic accident, CTP insurance can cover compensation claims made. Without this cover, you could be personally liable for legal and health claims related to the accident.
Unless a significant driving offence has been committed, the CTP scheme works under a no-fault concept, where anyone (except the driver) injured in the accident can claim under the cover. Some insurers may offer at-fault driver cover, where basic injury cover can be claimed when involved in a road accident where the driver is at fault.
Greenslip insurance solely covers liability (financially and legally) for injury or death caused to people in a road accident. This includes other drivers, passengers, pedestrians, cyclists and motorcyclists. It protects injured people involved in road accidents and aids them in receiving efficient financial support for their treatment. The cover eliminates the driver’s liability for compensation claims where financial consequences can be severe. Generally, CTP insurance promotes road safety by ensuring all vehicles on the road are covered in the event of an accident.
(CTP) Greenslip Insurance can vary between insurers and Australian states. However, cover is generally provided for:
There are common misconceptions about Greenslip Insurance and the elements to which the CTP Scheme applies. CTP Insurance excludes and does not cover:
CIG Insurance are partnered with Greenslip King as the number one CTP agent in NSW.
Greenslip King works with all of the major providers to achieve the most competitive outcomes for your motor fleet.
Greenslip Insurance is a requirement for any registered vehicle, but it can vary by vehicle type. Insurers may class each vehicle differently and adapt the insurance policy to the business and industry requirements, for instance:
For fleets like SUVs, utilities, and utes, CTP premiums are often influenced by geographic region, the claims history and any business-claimed ITC (Input Tax Credit). Due to the volume of these vehicles on the road, insurers are likely to offer competitive fleet rates.
For heavy motor vehicles (i.e. trucks with a gross mass of over 4.5 tonnes), premium calculations are more complex. Insurers will consider the vehicle code, nature of the business and the vehicle’s location. For these vehicles, Greenslip Insurance is available for shorter terms, like 3 or 6 months.
Where councils and government bodies operate vehicle fleets, such as specialised plant equipment and other heavy vehicles, CTP solutions are managed, accounting for their unique sector and ensuring that the policy can cover the spectrum of duties that government employees are required to perform.
As these vehicles are large-scale passenger carriers, the CTP requirements are different. Based on the industry’s specific risk profile and the number of vehicles within the fleet, insurers may provide customised discounts.
Tow trucks are considered specialised service vehicles, which impacts their premiums when it comes to Greenslip Insurance. CTP may not cover some aspects and risks associated with tow trucks. For instance, damage to the vehicle and third-party property often requires additional insurance policies.
Small businesses can group two or more vehicles under a single fleet policy, simplifying administration and costs associated with multiple greenslips. To ensure coverage is appropriate, it’s important to accurately and truthfully declare the vehicle’s usage.
Fleet CTP allows for discounted fleet rates for companies operating anywhere from two heavy vehicles to ten or more. The Common Expiry Date (CED) allows all vehicles to have their CTP and registration expire on the same date, which is convenient and easy to manage alongside business operations.
Insurance is at the forefront of every major decision or purchase we make. If you’ve just bought and registered a vehicle, you have likely heard of Compulsory Third Party (CTP) insurance, otherwise known as Greenslip insurance. At CIG Insurance, we want you to be confident with us and your claim. We value providing you with the substantial information you need to understand how we can protect you.CTP insurance is compulsory in Australia, with an estimated 1,870 claims lodged in South Australia alone in 2023-2024. In its Annual Report, the CTP Insurance Regulator outlines that CTP insurance is purchased at the time of motor vehicle registration, attaching the policy to the vehicle, not the buyer. In New South Wales, Australia, you are required to purchase a Greenslip from an approved insurer before you can register your vehicle. A study in 2018 discovered that only 33%of Australian drivers understood what their CTP insurance covered. Over 65% misunderstood their CTP insurance as cover for both injury to people and their vehicle.
CTP insurance can protect Australian drivers from accident claims with varying severity. From July 1 2016, to June 2024, the closed claims were diverse in gravity:
CTP insurance protection from July 1 2016, to June 2024 also varied by demographic:
Every year, claims are lodged with protection through CTP insurance. As an Australian driver, it is mandatory to have your Greenslip insurance. Nonetheless, you can stay protected through understanding how you can be covered, getting connected with an approved insurer and why the CTP insurance is in place.
Compulsory Third Party (CTP) insurance/ Greenslip Insurance is mandatory by law across all Australian states. The policies and coverage may differ between the states and the insurer that you choose, but it is currently illegal to drive a vehicle without CTP Insurance.
You will need to register your vehicle first. Depending on the insurer, you may be required to show the following:
CIG is part of the Steadfast Network, which means clients get access to broader policy wordings and products you won’t find on retail comparison sites. More importantly, we back clients not just at policy setup but through claims, renewals, and those moments where you need to focus on growing your business. Whether you require a detailed assessment of your current cover or clear, informed guidance on your insurance needs, our team is ready to support you.
At CIG Insurance, we provide you with a range of products designed to protect your lifestyle and protect your assets. Our team of brokers are ready to provide you with advice and recommendations to ensure you have confidence that if you need to make a claim, we’re ready to action it for you. We have partnered with CBN to reassure you that, with CIG Insurance, we can connect you with trustworthy and secure Insurance brokers
Stay protected on the road. Contact us today for more information.
