CTP – Greenslip Insurance

What Does CTP Greenslip Insurance Cover?

 

(CTP) Greenslip Insurance can vary between insurers and Australian states. However, cover is generally provided for:

 

• Medical expenses for the treatment of the injured people (including but not limited to rehabilitation and ongoing treatments)
• Salary compensation of the injured person if they cannot return to work
• Compensation to the deceased’s family (if applicable)
• Funeral expenses in the event of a fatality

What is Excluded? 

There are common misconceptions about Greenslip Insurance and the elements to which the CTP Scheme applies. CTP Insurance excludes and does not cover: 

• Damage caused to the insured vehicle or any other vehicle involved in the road accident
• Damage caused to property as a result of the accident, such as fencing and structures
• Any injuries sustained to you, unless you are covered by a ‘no-fault’ policy
• The cost of the loss or theft of your vehicle.

How Does Greenslip Insurance Work For Different Vehicles, Purposes and Businesses?

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:

Passenger vehicle, ute and van fleets:

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.

Heavy motor and Prime Movers:

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.

Councils and Government:

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.

Bus and Coach:

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:

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.

Corporate, Commercial, Small Business and Private Vehicles:

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.

Discounted Fleet rates and CED Common Expiry policies:

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.

Why CTP Is Important:

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.

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.