ACT car accidents – Is CTP insurance covering this common issue?

Published 11 Dec 2018

Author: Nassir Bechara

More than 285,000 motor vehicles are registered or re-registered in Capital Territory (ACT) annually, according to the ACT Treasury. Each of these need to be covered through compulsory third party (CTP) insurance to be roadworthy, with unregistered car owners at risk of financial penalties and liability for motor vehicle accidents.

What does CTP insurance cover?

CTP insurance provides compensation for everyone involved in a motor vehicle accident, covering those who sustain physical or mental injuries and helping to mitigate short and long-term healthcare and rehabilitation expenses. Individuals covered under the scheme include:

  • Drivers of another not at fault for a motor vehicle accident.
  • Passengers of any vehicles involved in a given incident.
  • Pedestrians and other road users such as cyclists.

CTP insurance doesn’t cover the costs incurred by individuals found to be at fault for the motor vehicle collision. Again, this includes drivers, passengers who drive dangerously, and pedestrians and other road users who take unreasonable risks that compromise a driver’s ability. Without CTP insurance, anyone found to be at fault in an accident is personally culpable for any medical costs incurred and is not legally protected from injured parties seeking private compensation.

Many road users, however, ask whether this scheme is worth it due to the view that Canberra has lower claim rates than other states. Are car accidents even common in the ACT?

Car accident figures in the ACT

ACT has the lowest rates of road fatalities nationwide at less than 1 per cent of all accidents, Budget Direct’s Car Accident Statistics 2018 survey shows. However, other figures within the report indicate a more damning view of the state of the roads:

  • Nearly 35 per cent of all fatal crashes in Australia occur in major cities.
  • There was a near-9 per cent rise in the number of hospitalised injuries between 2006 and 2013.
  • The ACT’s rate of serious injuries in 2016 was higher than that of Tasmania, despite a lower population.

The AAMI’s 2018 Crash Index shows Monaro Highway in the Canberra suburb of Hume to be the top accident-prone location in the ACT, with the number of incidents in this location on the rise from estimates in the past. This rise in the number of incidents affecting Canberrans, and the injury figures above, show the importance of CTP insurance when it comes to mitigating the costs of injuries sustained in motor vehicle accidents.

If you’ve been in a car collision recently and want compensation for any medical expenses incurred, why not contact Gerard Malouf & Partners today? Everyone is entitled to fair cover under the CTP scheme, and our expert ACT team can help you fight for a favourable outcome.