How does CTP insurance work in Tasmania?
Compulsory third party car insurance (CTP) is mandatory in Australia, but it works different in each state.
This type of cover is designed to pay out for injuries sustained in motor vehicle accidents. It covers:
- Other road users
Benefits payable include:
- Medical costs
- Ambulance transport
- Hospital treatments
- Loss of income
- Disability benefits and care expenses
- Funeral expenses and death benefits
The cost of this insurance is part of the vehicle registration, and registration renewal, fees.
How the scheme works
The scheme is administered by the Motor Accidents Insurance Board (MAIB). It’s a combined common law/no fault scheme.
This means that people who are injured in a motor vehicle accident are entitled to medical and loss of income benefits, regardless of who’s at fault for an accident.
It also means that people can recover additional damages, such as compensation for pain and suffering, from an at fault party.
Those “common law” procedures must be commenced within 3 years of an accident.
What does CTP insurance not cover?
CTP insurance does not cover property damage or vehicle theft. Generally, it doesn’t cover anything not specified above under “benefits payable.”
For these, you will need one of the optional car insurance types.
The cheapest extra cover is third party property damage car insurance. This can cover you if you are liable for damage to another person’s property.
To cover your own vehicle against damage, you will need to look at comprehensive car insurance.