CTP or compulsory third party insurance, is something every driver in Australia should know about. When you own a vehicle, you are required by law to pay for registration. A portion of that amount goes to your CTP with the rest paid to the government. This type of insurance is a requirement, yet many drivers do not realise what it is or that they are already paying for it because it is a built-in cost with their registration fee. So what is CTP and why are you required to pay for it?
CTP is used to indemnify, or protect, drivers and vehicle owners who are found legally liable after an accident. It only covers injuries to other people, it does not cover damage to property. It doesn’t have to be an accident involving another driver, either. Anyone who is injured due to you or your vehicle can file a claim including passengers, cyclists, pedestrians, motorcyclists, and others. This is outlined in the Motor Accident Insurance Act 1994.
The simplest way to explain CTP is that it covers drivers who are responsible for causing personal injury to others in a motor vehicle accident. A claim filed is brought against the CTP insurer that insures the at-fault driver rather than filing it against the driver themselves. If proven, the CTP insurer will pay out compensation for losses related to the incident.
Understanding CTP Claims
If someone is injured due to negligent driving, they are eligible to file a claim with the at-fault driver’s CTP insurer. This includes a wide range of people involved in vehicle accidents, including:
- Pedestrians or cyclists hit by a vehicle
- Bus, motorcycle & car passengers
- Motorcyclist who is not at fault
- Vehicle driver who is not at fault
In order to lodge a claim, the person injured must submit a Notice of Accident claim form which is given to the CTP insurer of the at-fault driver. The insurer will respond and begin an investigation to determine liability.
Liability must be proven before any compensation is paid out. If the negligence of the driver is not established, then the claim may be denied. This is often done with the help of local police. Even if no police officers are present at the scene of the accident, a report must be filed. Once fault has been determined, the CTP insurer will then begin reviewing the incident to determine how much compensation will be paid to the victim.
What Does My CTP Claim Cover?
Every situation is unique, which is why the amount paid out will vary from one case to the next. There are a number of things that may be considered when it comes time to add up compensation. These include:
- Lost income & superannuation funds
- Pain & suffering
- Medical expenses
- Rehabilitation costs
- Medications purchased
- Related travel expenses
- Future medical and rehab expenses
- Missed interest
It’s important to act quickly after an accident. Seek medical assistance right away, even if the injury seems minor. Quick reaction time can make a big difference in your ability to receive compensation.
If you need a lawyer that specialises in injury work, talk to Carew Lawyers today!