Motor vehicle accidents are devastating and this is particularly so when the motorists involved are un-insured. Can you imagine hitting someone, injuring them and not being insured? Worse still, can you imagine it happening to you?
Compulsory third party insurance is car insurance that covers victims involved in a car accident where the driver is at fault and the driver is insured.
It may also cover vehicle accidents where a passenger is responsible. The persons covered under a comprehensive third party insurance cover include: passengers, pedestrians, cyclists and any other road user apart from the driver.
Comprehensive car insurance covers the driver of the vehicle and the property damaged by the vehicle in an accident.
To be compensated, an injured person must prove that another person (who is insured) was at fault Comprehensive car insurance is commonly known as full insurance as it covers a wide number of risks that could occur to a vehicle including fire and theft which are in a separate insurance package. Comprehensive car insurance differs from compulsory third party insurance in several ways.
Comprehensive car insurance covers the driver of the vehicle the damage caused to the vehicle and the property damaged by the vehicle in an accident or any subsequent events caused by the accident such as fire or theft of parts (for subsequent events like fire). This form of insurance is mandatory for any instances where financing has been required to purchase a vehicle.
Those without comprehensive car insurance can take up a Third party property damage, fire, and theft insurance. It also covers the vehicle and not just the third party). Compulsory third party insurance covers other road users affected by the accident and any injuries caused by subsequent events caused by the accident. It does not cover the driver of the vehicle the damage caused to the vehicle or property damage caused by the vehicle.
However, both forms of insurance do not cover intentional accidents or people who intentionally caused an accident to injure them. This however does not stop people from trying Thanks to technology, such as traffic cameras that record such events, such acts of sabotage are rarely compensated. At the same time, traffic cameras enable authorities to catch unregistered vehicles.
In Australia, Compulsory third party insurance is as the name declares itself, compulsory. By law, all vehicles within a given state must have Compulsory Third Party Insurance is commonly known as ‘greenslip’ or CTP. According to the Australian third party car insurance website (view here), in most Australian states, CTP is included during vehicle registration with the exception of New South Wales, Australian Capital Territory, and Queensland where vehicle owners have the freedom to choose their CTP insurance provider.
In New South Wales, the Motor Accidents Association has a website, which enables a vehicle owner to calculate the CTP price for all licensed motor vehicle insurers in the state. In Queensland, ACT, and New South Wales, there is the freedom to change to a new Compulsory third party insurer once the cover is up for renewal.
Each state with the exception of Queensland and NSW has different claims managers and CTP insurers, which manage the Compulsory third party insurance scheme on behalf of the government.
In South Australia, for example, it is Allianz, which processes claims on behalf of the Motor Accident Commission while in the state of Western Australia it is the Insurance Commission of Western Australia.
In the Northern Territory, it is the Territory Insurance Office that handles the scheme .In Tasmania; it is the Motor Accidents Insurance Board while in Victoria it is the Transport Accident Commission.