How CTP insurance works in Queenland
Compulsory third party (CTP) insurance is the type of cover that compensates motorists, pedestrians and passengers for injuries sustained on the roads.
It’s administered by MAIC (the motor accident insurance commission). MAIC is a government organisation, but it’s operated through a range of private insurance companies.
In Queensland, CTP insurance is a blend of public and private cover.
How CTP insurance works in QLD
You can simply register a vehicle and choose a CTP insurer when you do. However, the products and the costs might vary, so it can be a good idea to do a bit of homework and pick your insurer before registering your vehicle.
The options are:
That’s the insurer that will be representing and covering you in the event of a road accident that causes injury or death.
In addition to this, there’s the “nominal defendant.” This is essentially the “fifth insurer,” run by the government to help hold the program together.
What’s the nominal defendant?
The majority of your CTP insurance premiums go to your chosen insurer, but a levy is set aside for the nominal defendant.
The nominal defendant comes in to cover uninsured motorists following an accident, and is also responsible for supporting claims that could not be paid in the event of insurer insolvency.
So if you’re hit and injured by an uninsured driver, then the nominal defendant will act as their insurer to help make sure you can get compensated.
Or if the culprit’s insurer goes out of business, the nominal defendant will also come in to pay claims. Its purpose is to make sure no one ends up without necessary compensation.
How does my CTP policy cover me?
The exact level of cover can vary between insurers, but generally your policy indemnifies you for financial liability in the event of you being responsible for another person’s injury while driving a vehicle.
This includes injuries to:
- Passengers in your car
- Other drivers and their passengers
- Motorcyclists and their passengers
Basically, your insurer steps between you and the injured party. The insurer can pay compensation, reach a settlement, cover medical expenses, ambulance bills, loss of income and long-term care that might be required, as needed.
But don’t take that as an invitation to drive recklessly. If you have a history of hazardous driving, then insurers might charge you more for CTP cover, within the price boundaries permitted by MAIC.
Do I need any other cover?
CTP insurance and the MAIC will generally not cover any kind of damage to vehicles or property. That’s where third party property car insurance comes in. With this, the at fault party is indemnified for damage to other people’s property.
Comprehensive car insurance, meanwhile, includes third party liability insurance as above, as well as cover for damage to your own car.