CTP Insurance Finder™ – CTP Insurance Comparison: Guide to comparing compulsory third party insurance

Posted May 31st, 2013 and last modified November 7th, 2013

Discover the keys to comparing Compulsory Third Party (CTP) Green slip insurance policies

CTP Insurance Comparison

A Green Slip is a type of insurance policy that you take out on your vehicle that protects you in case you’re involved in an accident where you or the person driving your vehicle are at fault. This policy provides coverage for CTP personal injury insurance and, in certain situations, offers cover irrespective of who was to blame for the accident.

CTP insurance is compulsory and is required when registering your vehicle. Unregistered vehicles involved in accidents are not covered and the driver may be personally liable for any injuries that occur during the accident.

Regardless of where you are in Australia, you are covered by your CTP insurance round the clock for any passengers in your vehicle and for other people on the roads, including drivers, passengers, pedestrians, motorcyclists, pillion passengers and cyclists. You are also covered for any injuries resulting from the use of a trailer.

CTP insurance, does not cover damage that was done to other vehicles or property.



CTP Green Slip Protection

CTP Insurance

Since October 2006, the Green Slip scheme has undergone various changes that have resulted in improved protection and benefits in certain situations, irrespective of the guilty party. Some of these improvements are as follows:

  • A special benefit for children, which means that any child injured in a car accident receives medical treatment, rehabilitation and care to help with their recovery, irrespective of who the guilty party is;
  • Creation of the Lifetime Care and Support scheme that offers people who were seriously injured, such as serious injury to the spinal cord or the brain, medical care, treatment, rehabilitation as well as care and support for the rest of their lives;
  • If someone was injured in an accident where no one is considered guilty because either one of the drivers became ill suddenly, like suffering a heart attack or a stroke, or there was an inexplicable mechanical failure or problem with the vehicle, that person is covered by the policy and will receive benefits.

So, if you have a Green Slip insurance policy, you can rest easy in the knowledge that if you cause an accident, whether as a driver or a motorcycle rider, any other person injured as a result of your actions will be cared for without you having to pay the costs yourself and without risk of you being sued.

Please note that the Motor Accidents Compensation Act 1999 clearly stipulates the coverage terms and scope of a New South Wales Green Slip policy, which means that the coverage offered is identical in all of NSW, regardless of the insurer issuing the policy. Conversely, public liability insurance policies differ in regards to their terms and policies from one insurer to the next. For this reason, the Motor Accidents Authority advises people who have both policies to get in touch with their insurer to make sure that their public liability policy covers them for anything that is not included in the Green Slip policy.

What is Third Party Insurance?

The third party insurance scheme ensures that people who were injured or killed in a motor vehicle accident can receive compensation. The scheme was created to make sure that people can be compensated, irrespective of the financial situation of the owner of the vehicle or the person driving it. Essentially, this insurance policy covers the driver against personal liability for the injury or death of another person when they are the guilty party. In other words, if you cause an accident that leads to the injury or death of someone else, you will not have to pay anything yourself as the insurance policy will cover it.

The type of compensation available covers both economic and non-economic loss, meaning that hospital, medical and rehabilitation expenses as well as loss of income will be covered as well as any pain, suffering and loss of quality of life. The level of compensation available is limited and there are a lot of factors that will determine exactly how much someone will be awarded.

The scheme was created on the basis that a driver of the motor vehicle had to be the guilty party for someone to be compensated. Additionally, the act was created in such a way that the guilty driver was not entitled to receiving any form of compensation. However, there have been changes made that have slightly modified this fault based principle so that guilty parties can also receive certain benefits.

There have been four major changes to the scheme, namely:

  • Special children’s benefit, which states that children younger than 16 can apply for this benefit and be compensated, even if they were the cause of the accident;
  • Blameless accidents, which stipulates that people who were killed or suffered an injury in an accident can receive compensation, even if there wasn’t anyone to blame. Such accidents include those caused by drivers who suffer a sudden onset of an illness or medical issue, such as a heart attack, collisions with animals that could not be avoided and inexplicable mechanical problems. However, the Act does not permit the driver to make a claim, even if the accident was classed as a blameless one;
  • Bulk billing arrangements. This proviso states that the expenses associated with hospital care, ambulance transport and any other treatments needed for the guilty driver are funded by the insurance policy, just like for any other person that was injured in the accident. In other words, regardless of who is to blame, the scheme will cover the expenses in question;
  • Accident notification provisions. This amendment changes the early payment of $5,000 entitlement so that it now extends to the driver who was to blame as well. Thus, the guilty party can receive up to $5,000 to cover treatment and loss of income by lodging an Accident Notification Form.

Despite the changes that were made to the scheme, the person to blame is still not entitled to receive all the benefits that other parties who were injured in the accident have access to.

There are certain benefits that are not covered by the bulk billing arrangements or the accident notification provisions to which guilty parties do not have access to.

Did you know?

The guilty party cannot file a claim for:

  • Any expenses over $5,000 incurred in a medical facility that is not a public hospital connected to medical treatment, pharmaceuticals and rehabilitation;
  • Attendant or respite care;
  • Changes to their residence;
  • Benefits to cover loss of quality of life, pain and suffering;
  • Past loss of income that is over the $5,000 ANF limit;
  • Future loss of income.

About the Lifetime Care & Support Scheme

The Lifetime Care and Support plan offers compensation to people who suffered catastrophic injuries in a motor vehicle accident. This plan does not take into account who the guilty party is, offering help to any devastatingly injured person, irrespective of who caused the accident they were injured in.

Initially, the plan was introduced to cover children under 16 years of age but has now been expanded to include any adult who suffers serious injuries in a motor vehicle accident, which means that even the driver who was to blame for the accident is covered by the Lifetime Care and Support scheme.

The scheme clearly defines what represents a catastrophic injury and includes such injuries as damage to the spinal cord, brain injury, serious burns, complete loss of vision and multiple amputations.

The Lifetime Care and Support plan was created because it became clear that people who suffered devastating injuries in a motor vehicle accident might be in need of treatment, help and attendant care for the remainder of their lives. This degree of care was not covered by the third party insurance scheme, which is why the plan was introduced.

The funding for the Lifetime Care and Support scheme comes from the Medical Care and Injury Services Levy (MCIS Levy), which appears as a separate entry with the payment of your Green Slip. This Levy also provides funding for hospital and ambulance expenses for any motor vehicle accident. These expenses used to be part of your Green Slip premium. The MCIS Levy is determined as a percentage of the base premium of your Green Slip and this percentage differs according to various elements such as where you live and the type of vehicle you own.

To give you an idea, the Motor Accident Authority has put up on its site the MCIS Levy percentages on three common types of vehicles pertaining to five different regions, as follows:

Vehicle Type

Sydney Metropolitan

Outer Metropolitan

Newcastle / Central Coast

Wollongong

Country

Motorcar

31%

36%

38.5%

35.3%

39.5%

Motorbike (226 – 725cc)

43.9%

47.5%

48.3%

48.5%

47.5%

Light goods transport vehicle (up to 4.5t GVM)

33.3%

33.3%

32.4%

30.9%

35.1%

How to Buy a Green Slip?

In NSW, you can purchase Compulsory Third Party or Green Slip insurance from licenced insurance companies. Some of these companies will permit certain insurance agents to sell Green Slip insurance policies in their name.

To buy a Green Slip policy, you will have to provide the insurer or the agent with some information regarding your situation. This information can include the following:

  • Your vehicle’s make, model and manufacturing year;
  • The postcode of where you garage your vehicle;
  • Whether you use your vehicle for personal reasons or your business;
  • How old you are or the age of anyone else who may drive your vehicle;
  • Details of any accidents you have been involved in as well as your insurance and claims history;
  • Details pertaining to your driving record, including information on your driver’s licence.

You must ensure that all the details you provide are correct because if the Green Slip premium is determined based on erroneous information and it leads to a lower premium than you should actually be paying, the insurance company will demand that you pay the difference. If you don’t do so, you could end up having the registration of your vehicle cancelled.

Purchasing from an insurance agent

You have to be careful when purchasing your Green Slip insurance policy from an insurance agent. So, the first thing you should do is to find out which insurance company the agent represents and whether or not that company is licenced. Subsequently, get in touch with the insurer and check whether or not the agent in question has their authorisation to sell Green Slips.

The Motor Accident Authority’s website offers a Green Slip calculator, which you can use to make sure the price you’re being charged is correct. This calculator will permit you to conduct a price comparison of all the licenced insurance companies.

Scams and Alerts

If you have been scammed or have been the victim of any form of deceptive conduct, you can report the issue to the NSW Police, NSW Fair Trading, the Australian Competition and Consumer Commission or the Motor Accident Authority.

What does a green slip cover you for?

A green slip will ensure that a person who was killed or injured in a motor vehicle accident you caused receives compensation. This coverage includes passengers, cyclists, motorcyclists, pedestrians, the person driving the other vehicle as well as the guilty driver but only up to a point. Trailers are also covered by the green slip of the vehicle that is towing it.

However, a green slip does not provide coverage for the following:

  • The guilty driver does not have access to all the scheme’s benefits, unless said driver has suffered a catastrophic injury that is in accordance to the definition laid out in the Lifetime Care & Support Scheme, in which case the latter policy applies;
  • Any damage incurred by your property or vehicle;
  • Any damage incurred by the vehicles or property of other people;
  • If your vehicle was stolen.

Regardless of where the accident involving your vehicle took place, you needn’t worry because your green slip is effective in the entire country.

There are seven licenced insurance companies that offer green slips but of these, four offer an additional feature, namely coverage for the driver who was to blame for the accident. The cost of this additional coverage is included in the cost of the green slip. This additional insurance offers certain benefits that are available as lump sums and are detailed in the policy. They are meant to cover the injuries the guilty driver may suffer and is definitely a good investment that you should seriously take into account when buying your green slip.

The Motor Accidents Compensation Act 1999 and the Motor Accidents Act 2006 detail the following information:

  • The people who are entitled to receive compensation;
  • How the compensation can be paid out;
  • The maximum amount of compensation that can be awarded.

Thus, you should request advice on your situation based on the details set out in these Acts instead of relying solely on the information provided in this document.

MAA logo
What is the Motor Accidents Authority?

The Motor Accidents Authority (MAA) was created by the Motor Accidents Compensation Act 1999 as a statutory authority to manage the CTP greenslip scheme and the Lifetime Care & Support scheme on behalf of the NSW state government and in accordance to the stipulations of the Acts. The Motor Accidents Compensation Act 1999 defines the structure of the MAA as well as its functions.

In the Annual Report of 2011 – 2012, the Motor Accident Authority defines its vision as being the reduction of the social and economic impact of motor accidents. It goes on to explain that its ultimate goal is to make sure that people who are injured as the result of a motor vehicle accident receive quality treatment and an appropriate degree of benefits provided by a sustainable insurance plan which receives funding from NSW vehicle owners.

Furthermore, the Motor Accidents Authority says that they also aim to ensure that premiums are not exorbitantly priced and are equitable so that injured and insured people can receive benefits via a fair, efficient and sustainable Compulsory Third Party insurance plan funded by these premiums.

The Motor Accidents Authority

The MAA operates in six key areas, which are below:

Compliance – They make sure that insurance companies and their stakeholders are in full compliance with the stipulations of the act and its guidelines;

Effectiveness – They licence insurance companies, regulate their conduct, track and, if applicable, reject premiums, ensure a competitive and fair market, keep an eye on profitability and track the solvency of insurance companies.

Health Outcomes – They work to improve the management of injuries and health outcomes as well as improving the quality of the services available for people who have been injured and their families.

Claims – They work to improve the efficiency of the assessment process of claims, reduce the number of disputes involved in claims assessment and ensure a timely resolution for disputes.

Information – Track how the scheme is operating and provide detailed reports. They also make sure that people purchasing greenslips have all the information they need by offering details regarding price comparisons. They also operate an advisory service for claims.

Prevention – They fund research via sponsorships and partnerships with the community in order to attempt to prevent injuries.

The website of the MAA is a great source of information on CTP greenslips, which includes information on prices and advice on any claim you may want to lodge.


How are the prices for greenslips determined?

It’s important to understand that greenslip prices are not established by the Government, the MAA or the RTA. These insurance policies are offered by certain licenced insurance companies who establish premiums in a competitive market based on a number of factors, which may include:

  • Your accident history;
  • How old the all the regular drivers of your vehicle are;
  • How old your vehicle is;
  • Comprehensive property insurance or third party property insurance;
  • Whether your vehicle is being used for personal or business purposes;
  • Whether you are renewing your greenslip or purchasing a new one.

You can see how much importance an insurer places on certain factors in terms of the risk associated with them by seeing which criteria the company uses to set premiums.

The insurers are also permitted to offer discounts but also impose loadings if they feel it is necessary. However, the MAA Premium Determination Guidelines stipulates an allowable range for discounts and loadings, so insurers can’t do exactly what they want. The discount and loading levels differ from one insurer to the next, which is why you should shop around and get a few quotes before deciding on which insurance company to work with.

Who sets greenslip prices

As previously mentioned, greenslips are offered by insurance companies that have been licenced by the MAA to do so. These insurers are known as CTP insurers and they are the ones who set the premiums. However the MAA regulates the Green Slip scheme, which is why the constantly monitor insurers to check that the premiums are in compliance with the law and guidelines. There are certain rules CTP insurers must abide by when setting premiums and they are the same for all types of vehicles.

What occurs when an insurer changes greenslip premiums?

CTP insurers can put forward new pricing schemes anytime they wish but they must do so at least once a year or when the MAA determines they have to, which is usually July 1st.

How are Green Slip premiums established?

First, the price range for each vehicle type is established and then various risk factors are used to calculate the premium for each vehicle owner. The premium, however, must fall within the allowable price range as set by the MAA.

How insurers establish what price range a vehicle belongs to using the MAA relativities table

A CTP insurer will first determine the average premium they have to charge so they can cover their costs and have the ability to make payments on claims for accidents. Subsequently, they have to use the relativities chart provided by the MAA when setting the price range for each vehicle type. This is to make sure that cross-subsidies are avoided when it comes to people who own different types of vehicles, such as trucks and cars, as well as vehicles garaged in different geographic regions, namely Sydney, outer Sydney, Wollongong, Newcastle / Central Coast and country NSW.

The relativity table is created by independent actuaries who use only real data to determine how much a policy costs by averaging the CTP claims made for each type of vehicle. This table then goes on to be approved by the board of the MAA.

The insurance company must use the table when they establish the price range for each vehicle type and geographic area and the premium must always fall within this range. For example, the average cost per policy determined by the total claims made on smaller motorcycles is smaller than the average cost of claims made against sedans garaged mainly in Sydney. Furthermore, the average cost for large trucks is a lot higher than that of Sydney sedans.

Using the table to establish price ranges is only the first step. Next, the insurer looks at the individual risk factors.

Individual risk factors are considered

After the price range is established for each type of vehicle and geographic region, the insurer is allowed to customise the premium for an individual vehicle owner based on risk, as long as it falls within the range. Factors that are considered include the age of the person driving the vehicle or riding on it, the age of the vehicle, the person’s accident history, how often they made claims and even their driving record.

Generally, if you are a safe driver, you are more likely to receive a better price for your greenslip insurance.

The MAA encourages people to shop around for greenslip quotes because within the allowable price range, insurers calculate prices differently depending on the situation of each individual driver. This means that renewing your greenslip with the same insurer does not guarantee that you will get the best possible price so shop around if you want to save some money.

Since one of the MAA’s goals is to make sure that anyone can afford to pay their premiums, they have put a cap on how much an insurer can charge for each vehicle type. The minimum limit in this range is the lowest price an insurer can charge after discounts and bonuses. Of course, the maximum price is the most an insurer can charge after imposed loadings. In other words, even if you are an extremely risky driver, the insurer cannot increase your premiums with very high loadings, which could make the premium unaffordable.

Younger drivers with less experience are the ones who gain the most benefits from this because a large number of the guilty drivers registered on greenslip claims are under 26 years of age, which means that the real cost of a premium would be triple that of a premium for someone aged 30 to 54. However, the Act recognises the fact that everyone is a young driver at some point in time and younger drivers require greenslips that are more affordable.

Greenslip price guide areas

One of the factors that influences the level of your premium is where your car is garaged on a regular basis. Below are two tables that will help you determine what zone you fall under.

Zones According to Postcode

Greenslip price guide zones

From

To

Sydney Metropolitan

1001

2084

2555

2745

2751

2759

2082

2234

2567

2749

-

2770

Outer Metropolitan

2568

2752

2754

2757

2773

2574

-

2755

2758

2786

Wollongong

2500

2530

2526

-

Newcastle / Central Coast

2250

2314

2309

2327

Country

2311

2328

2527

2532

2575

2787

2312

2490

2529

2551

2739

2914


More complex zones according to postcode

Zone

Greenslip price guide zone

Excluding the following suburbs

2083

Metropolitan

Mooney Mooney

Cheero Point

Bar Point

Milsons Passage

Cogra Bay

These areas fall under the Newcastle / Central Coast price guide zone

2560

Metropolitan

Appin

This suburb falls under the Outer Metropolitan price guide zone

2750

Metropolitan

Emu Plains

Leonay

These areas come under the Outer Metropolitan area in the price guide

2753

Metropolitan

Bowen Mountain

Grose (Vale & Wold)

Yarramundi (& Falls)

These suburbs fall under the Outer Metropolitan zone in the price guide

2756

Metropolitan

Colo

Ebenezer

Freemans Reach

Glossodia

Lower Portland

Wilberforce

Sackville

These suburbs fall under the Outer Metropolitan zone in the price guide


Greenslip premiums on motorcycles

A review conducted by the MAA after a number of motorcyclists complained about premiums that were too high on their greenslips led to a change in guidelines. Thus, the MAA worked together with the Motorcycle Council of NSW and found that too many motorcycles were being grouped together, which led to some people paying premiums that were too high for the vehicle they owned and were, in fact, cross-subsidising owners of other motorcycles.

Thus, five new classes were introduced for motorcycles based on the following engine capacity ranges:

  • Up to and including 225cc;
  • 226cc to 725cc
  • 726cc to 1125cc
  • 1126cc to 1325cc
  • 1325cc and greater.

While the motorcycle class and geographic region will certainly impact the price you pay for your greenslip, your personal circumstances also play a role. The extent to which personal risk factors are taken into account differs from insurer to insurer, which is why you should take the time to get quotes from each of the insurers offering greenslips to make sure you are getting the best possible price. There is a Green Slip Calculator available on the MAA website, which you can use to see the greenslip prices offered by each of the seven CTP insurers side-by-side, making it easier to compare them.

Why is the cost of buying a greenslip increasing?

CTP insurance is offered by licensed insurance companies who establish premiums on their own based on certain regulations set out by the Motor Accidents Authority. When calculating Green Slip prices, insurance companies consider different variables, including how frequently injury claims are lodge and their value, as well as how much money the need to put aside to cover any future claims. The latter can be lodged many years after the occurrence of an accident.

There are a few variables that are currently having an effect on Green Slip prices and are leading to a rise in these prices. Some of these are:

Insurers are seeing rock-bottom returns: Insurers are obligated to take the premiums they collect and invest them to make sure they can cover claims in the future. However, in recent years the ROI on assets with a low risk have dropped significantly. For example, Government Bonds only offer a 2.5% return – a record low – compared to 7%, which was what insurers could expect to receive a few years ago. This means that insurers can rely on a smaller amount derived from their investments to cover future claims and they need to make up the difference from somewhere, which means higher premiums.

The number of claims have increased: There has been a sharp increase in claims over the past four years of approximately 20%. The table below details how the number of claims have increased for every 10,000 registered vehicles over the previous years. This increase is partially explained due to the fact that more people who were injured in an accident are coming forward and lodging claims. Thus, the number of people lodging claims has increased by 25%.

Factors that affect Green Slip prices

2008

2009

2010

2011

Number of claim notifications

10,183

11,554

11,909

12,585

Frequency of claims for every 10,000 vehicles

23

26

26

29

Proportion of road casualties lodging a claim %

41

48

50

51

Personal risk factors can also influence your greenslip premium. Thus, if there have been changes in your personal risk factors, you could find yourself paying a higher premium. An insurer might offer a discount or impose a loading using objective risk rating factors that include your age, the age of the vehicle and your driving record, which includes the number of accidents you were to blame for, traffic offences, comprehensive insurance cover, the level of no claim bonus and demerit points. If any of these aspects change, you could find yourself paying a different premium. It is advisable for you to talk with your insurance company if you wish to find out more about how these factors influence your premium.

If you want to get a better deal on your greenslip, keep in mind that you don’t need to renew this insurance policy with the same insurance company every year. Since prices vary according to your personal situation, you should shop around to make sure you get the best possible price for you.

Guide to the Medical Care & Injury Services (MCIS) Levy

The Medical Care & Injury Services Levy or the MCIS Levy shows up as a separate expense on your greenslip. This tax was first instituted in 2006 when the Lifetime Care and Support scheme was created to provide funding for this plan. Concurrently, other expenses were removed from the premium and were added to the MCIS Levy. Now, this tax is made up of two elements, namely the LTCSA Levy, which is the largest component of the tax, and the Motor Accident Authority Levy.

The MAA Levy is used to fund the operating expenses of the MAA and to cover the fees of the RTA so they can manage the registration process. It is also used to cover the expenses of a public hospital, ambulance and the other services people who were injured in an accident need.

The Lifetime Care and Support Scheme Levy is established by the Board of this scheme and is determined as a percentage of the base premium you are paying on your greenslip. This percentage differs according to different risk variables, including the type of the vehicle and the geographical area where it is regularly garaged.

The MAA element of the MCIS Levy is established by the MAA and is determined at the moment as a percentage of the greenslip premium, which is the same for all premiums, namely 8%.

The following table available on the MAA website shows the MCIS Levy percentages for three common types of vehicles in five geographic areas.

Vehicle Type

Sydney Metropolitan

Outer Metropolitan

Newcastle / Central Coast

Wollongong

Country

Motorcar

31%

36%

38.5%

35.3%

39.5%

Motorbike (226 – 725cc)

43.9%

47.5%

48.3%

48.5%

47.5%

Light goods transport vehicle (up to 4.5t GVM)

33.3%

33.3%

32.4%

30.9%

35.1%

Fraudulent Greenslip Claims and False Declarations

The Compulsory Third Party insurance plan receives its funding from NSW motorists, which is why the MAA does everything it can to discourage and stop people from making fraudulent claims and false declarations.

As a result, the MAA has identified a possible Compulsory Third Party insurance scam that involves greenslips. A number of fraudulent policies have been found in Southern and South Western Sydney and there are also reports of the existence of such policies in other areas.

If you’ve purchased a policy from an agent that is not authorised or an insurance company that is not licensed, you might not have coverage, which will make you personally liable for any injury you cause. The policies that are found to be fraudulent might be cancelled, which could lead to the cancellation of the vehicle registration. So, you need to be careful because you could be liable for fines in excess of $1,000 if you are driving around in a vehicle that is not registered and not insured.

If you suspect that you may have been the victim of fraud or of a scam, or you have any doubts regarding the legitimacy of your greenslip, you need to get in touch with the insurance company on the policy to make sure it is valid.

In terms of claims, it is imperative that the information you give regarding your claim is honest. If you make a false declaration or offer misleading information, it is considered an offence and any money you receive as a result of the claim will have to be returned. Additionally, if you lodge a fraudulent claim, you could be fined up to $5,500 or you may have to serve up to 12 months in prison or both.

If you know someone who you are sure or suspect is making a fraudulent or false claim under the Compulsory Third Party plan, you should get in touch with the insurance company in question. If you don’t know who the insurer is, then you should get in touch with the Motor Accidents Authority Claims Advisory Service.

L plates
Youngest drivers and their obligations

When purchasing a greenslip, you have to inform the insurance company of the age of the youngest person who will be driving your vehicle, if requested. The driver’s age is one factor insurance companies use to determine the level of risk they are opening themselves up to and it will help them in their calculations of the premium they will charge for your CTP greenslips.

If the youngest driver of your vehicle is a learner driver, you still need to let the insurance company know. However, most insurance companies tend not to impose a loading based on the age of a person who is a learner driver.

If you don’t reveal the age, according to the Motor Accidents Compensation Act 1999 No 41, it doesn’t matter if the right premium hasn’t been paid on a greenslip because it is still valid and fully operational. Despite this, if you have been paying the wrong premium, the insurance company has the right to claim the difference between what you should have been paying and what you actually paid.

If you make a claim on a greenslip on which you’ve been paying a premium that is incorrect because you knowingly made a false declaration, then the insurance company has the right to claim up to $2,000 from you.

List of insurance companies selling greenslips

Below is a list of the insurance companies who are currently licenced to sell greenslips. Most of these insurers allow you to get an online quote, which you can do by visiting the links provided. Otherwise, you can contact them via their customer service phone lines at the numbers offered below.

Frequently Asked Questions about Greenslips

What is a CTP Green Slip?

A CTP Green Slip is a type of insurance policy that provides coverage for damages claims for the person driving a vehicle that is involved in an accident and who is to blame for the crash. It ensures that the person who was injured or killed receives compensation.

CTP stands for ‘Compulsory Third Party’. Greenslip, green slip, ctp greenslip and compulsory third party insurance are all terms that mean the same thing and are interchangeable.

Do I need a CTP Green Slip?

A motor vehicle can only be registered in NSW if you have a CTP Green Slip, which is mandatory by law. This excludes trailers.

Do I have coverage outside NSW?

Despite the fact that your vehicle is registered in NSW, this insurance policy covers you regardless of where you are travelling in Australia.

Who and what does the CTP green slip cover?

A greenslip provides coverage for the compensation of someone who sustained injuries or was killed in a vehicle accident. This includes pedestrians, passengers, cyclists, motorcyclists, and the person driving the other vehicle. The guilty party is also covered but to a lesser degree. Trailers are covered by the greenslip of the vehicle towing them.

What doesn’t the CTP green slip cover?

A greenslip doesn’t provide coverage for the following:

  • A driver who is to blame for the accident doesn’t have access to all of the benefits of the scheme, unless said driver has sustain devastating injuries as laid out by the Lifetime Care and Support Scheme. In this case, the latter insurance plan applies;
  • Damage your vehicle or property incurred;
  • Damage caused to the other person’s vehicle or property;
  • If your vehicle was stolen.

Where can I get a CTP Green Slip?

CTP Green Slips are sold by insurance companies but these have to be licenced to do so. They must also be in full compliance with the stipulations of the Motor Accidents Compensation Act 1999. At the moment, there are seven insurance companies who are authorised to sell CTP Green Slips in NSW.

Licenced insurance companies are regulated by the Motor Accidents Authority of NSW (MAA).

What is the Motor Accidents Authority?

The Motor Accidents Authority or the MAA was created in March 1989 by the NSW Parliament under the Motor Accidents Act 1988. Currently, the MAA’s operation is governed by the Motor Accidents Compensation Act 1999. The MAA is responsible for the administration of the Green Slip scheme and its goal is to offer road users an environment that is safer. They also wish to improve injury management and ensure that the Green Slip insurance plan is affordable for everyone as well as being fair, effective and efficient.

Who establishes the premiums?

The premiums are not the responsibility of the MAA or the Government. Instead, they are calculated by the insurance companies. However, they are required to submit their premium schedules to the MAA first to receive approval.

What happens to my premium?

The premium you pay is used to cover compensation payments. The MAA is funded by the levy you have to pay on premiums and this tax is also used for research and education projects as well as to improve road safety.

Which insurance companies offer green slips?

There are currently seven insurance companies licensed to sell green slips in NSW, namely Allianz, AAMI, CIC Allianz, GIO, NRMA, QBE and Zurich.

Can you explain the MCIS Levy?

When you buy a green slip, you are taking part in two schemes, namely the Third Party insurance scheme, which is regulated by the Motor Accidents Compensation Act 1999 and the Lifetime Care and Support scheme, which is governed by the Motor Accidents (Lifetime Care and Support) Act 2006. The goal of the MCIS Levy was initially to fund the Lifetime Care and Support scheme.

The MCIS Levy is featured as a separate expense on your greenslip and is also used to cover the costs of hospitalisation, ambulance services and any other services a person injured in an accident might require. These costs were previously included in the greenslip premium.

This Levy is determined as a percentage of the base greenslip premium and varies according to different variables, including type of vehicle and geographic area. The way the percentage for the MCIS levy is determined is not published but the MAA has published a chart showing the percentages for three common types of vehicles and five geographic areas. The percentages range from 32% for a car in the Sydney metropolitan area to 49.1% for a motorcycle with an engine that exceeds 300cc in the country.

While the Levy might appear as a separate item on your greenslip payment, it is still an integral part of the overall cost of the green slip. So, when shopping around you should consider the entire cost of the green slip.

Are there price differences between green slips?

Some insurance companies will offer a cheaper green slip than others but the price of the greenslip from each insurer should be identical for that company, regardless of whether you purchased it directly from the company or from an authorised insurance agent.

When purchasing a green slip, you have to make sure that the price was correctly calculated according to the type of vehicle you own and the other details you provided. If this calculation is correct, then a green slip from the same insurance company should be the same price, no matter where you bought it from.

Why is there a price difference for green slips from different insurance companies?

Each insurance company is responsible for determining their own greenslip prices. And while these prices are regulated by the MAA, insurance companies use different variables and give these factors different levels of importance when working out what they will charge in terms of premiums.

What is the simplest way for me to compare prices on green slips?

The simplest way to conduct a price comparison between the green slips offered by each of the seven insurers is to use the price service comparison service offered on the MAA site. The Green Slip calculator will supply you with a price from each insurer for a green slip based on the type of vehicle you own and other information. You will also be supplied with contact information for each of the insurers so you can contact the one you decide on to make the purchase.

The green slip can be purchased via phone and the insurance company will inform the RTA electronically. However, the Green Slip calculator only works for common types of vehicles, so if your vehicle isn’t part of one of these classes then you will have to contact the insurance companies separately to conduct your own comparison. You will also have to contact the insurers directly if you want to claim an input tax credit for GST.

Are there any differences between CTP Green Slips?

There are no differences between CTP Green Slips, irrespective of which insurer you purchased yours from. The only difference lies in the AT Fault Driver Cover, which is an optional and additional feature.

All green slips provide the statutory coverage the law requires. Of the seven insurers, four companies also offer At Fault Driver Cover. This feature is definitely something you should consider because it offers benefits for the driver who was to blame for the accident.

What is At Fault Driver Cover?

With the green slip scheme, the driver to blame is only covered if he or she suffers catastrophic injuries. However, some insurance companies offer an extra benefit with their CTP green slips, namely At Fault Driver Cover. This policy ensures the driver who caused the accidents gets some level of compensation for the injuries they incur. The amount of compensation differs from one insurance company to the next.

Can I get At Fault Driver Cover from any insurance company?

No, because only four of the seven licenced CTP insurance companies offer At Fault Driver Cover. These are Allianz, GIO, NRMA Insurance and Zurich.

What is the simplest way to get in touch with the insurance companies?

All insurance companies have a phone number specifically for quotes and the purchase of green slips. Keep in mind that not all of these companies have an online system via which you can get a quote or buy your green slip.

When I sell my car, what happens to the green slip?

A green slip travels with the vehicle, so when you sell your car or other vehicle, your green slip is transferred to the new owner. If you purchase a vehicle that has already been registered, you need to ensure that the registration is transferred to your name. Then, you won’t need to purchase a new green slip for that particular vehicle until its current registration hits its expiration date.

The RTA is notified of an ownership transfer whenever a vehicle is bought or sold. The RTA then informs the insurance company that issued the green slip of the fact that the vehicle has a new owner.

Am I allowed to cancel my green slip?

If you choose to do so, you may cancel your green slip. However, to do this, you need to contact the RTA to cancel your registration first. Subsequently, if you provide your insurance company with proof that you cancelled your registration, you are entitled to receive a refund that is equivalent to the amount of time left on your green slip.

There is a chance that the insurance company might charge a penalty because you are cancelling your policy and you might not be able to get a refund of the MCIS Levy.

What variables impact the price of my green slip?

There are quite a number of variables that insurance companies take into account when they calculate the premium they will charge for a green slip. These factors also have different levels of importance for each insurer, which further influences the price and is a good reason for people to shop around for quotes.

The main variables taken into consideration include geographic area, vehicle type, vehicle age, how the vehicle performs, age of the driver, driving history and your history in terms of the number and value of the claims you have lodged.

Why is the price for a green slip different if I want to claim for GST?

If you want to claim an input tax credit for GST, then be prepared to pay more for a green slip because prices are higher. The MAA permits insurance companies to charge more because they do not receive an input tax credit for GST when paying out claims. Additionally, there are certain administrative expenses the insurer needs to cover when implementing the GST.

Do all insurance companies notify the RTA electronically and how long does this process take?

When you buy your green slip, all insurance companies will inform the RTA electronically. If you buy your green slip direct from the insurance company, it takes about one hour for the company to inform the RTA. If you are working with an insurance agent or broker, then you will have to ask them how long it will take for the RTA to be notified.

What is an e-greenslip?

An e-greenslip simply refers to the RTA being informed electronically by the insurance companies of the purchase of a green slip.

Do I receive any discounts on other insurance policies?

Of the seven licenced insurance companies, two of them offer discounts on some of the other policies they offer if you purchase your green slip from them.

Is it possible to get a cheaper green slip from an agent or broker?

The law states that the price for a CTP green slip from a certain insurance company has to be the same no matter where it is being procured from. So, you will pay the exact same amount, whether you are getting it from the company or from an agent.

As long as the price of the CTP green slip has been calculated correctly according to your personal information and vehicle type, the price of this insurance policy should be identical, irrespective of whether you are buying it from the insurer or an agent or broker.

What is an eSafety Check?

eSafety Checks were previously referred to as Pink Slips and represent the report detailing the safety inspection of your vehicle. An eSafety Check is mandatory if you want to renew your vehicle registration.

How often should I take my vehicle in for an eSafety Check?

If your vehicle is new, you likely won’t need an eSafety Check for the first five years. If you own a vehicle older than five years, then you will have to take it in for an eSafety Check every year. However, you needn’t worry about timing because the renewal papers the RTA issues will inform you whether or not you need to take your vehicle in for an e-Safety Check before you can renew its registration.

Where can I get an eSafety Check?

You must take your vehicle in to an Authorised Inspection Station, also known as an eSafety Station, to get your eSafety Check. These stations issue the eSafety Check electronically and send it straight to the RTA. You can find a list of eSafety Stations at myrta.com.

May I register my vehicle for less than a year?

Cars, motorcycles and light trucks can be registered for either six or 12 months while trailers can be registered for three or 12 months. A green slip can also be bought for six or 12 months.

However, keep in mind that when you buy your green slip, it has to be valid for the same length of time as the period for which you will be registering your vehicle. If you wish to renew the registration of your vehicle for less than a year, you can do it online at myrta.com.

What if I am transferring my vehicle from another state?

When transferring a vehicle from interstate, the registration requirements are somewhat different. However, you will still need to purchase a CTP green slip. Details regarding the requirements for the registration of a vehicle coming from another state are available at myrta.com.

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2 Responses to CTP Insurance Finder™ – CTP Insurance Comparison: Guide to comparing compulsory third party insurance

  1. Default Gravatar
    John | October 19, 2013

    Where is the list of licensed insurers?

    • Staff
      Shirley | October 21, 2013

      Hi John,

      Thanks for your comment.

      Please find a list of providers here and our car insurance comparison here.

      Hope this helps,
      Shirley

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