How does CTP insurance work in the ACT?

Published 04 Oct 2018

The government of the Australian Capital Territory (ACT) put regulations in place that require everyone who owns a motor vehicle in Australia, no matter the state or territory, to purchase compulsory third-party (CTP) insurance each year when the vehicle is registered.

There are currently around 280,000 motor vehicles registered (or renewed) every year, according to the ACT.

How does CTP insurance work?

If someone other than you in a motor vehicle accident sustains an injury, whether a biker, pedestrian, passenger or driver of another vehicle, and the accident is found to be your fault (or the fault of someone who is driving your car), CTP insurance will cover those other people’s injuries.

Looking at this in reverse, if you sustained injuries from a motor vehicle accident, the only way you’ll receive compensation from someone else’s CTP insurance is if the accident wasn’t your fault.

If no one was at fault in the crash, no one receives compensation from CTP insurance, and Medicare or other health insurance coverage would have to cover the costs.

How much compensation can an injured person get?

The amount of compensation a person can receive can vary based on a number of factors, including:

  • The length of time taken to receive the compensation.
  • The individual circumstances of the injuries and the injured person.
  • Negotiations made between insures, injured parties, and the court.

What would happen if you didn’t have CTP insurance?

If you were found to be at fault for injuring other people in a motor vehicle accident, you would be personally responsible for paying for any expenses related to those injuries if you didn’t have CTP coverage. The ACT reports that this could add up to hundreds of thousands of dollars in certain instances. If you failed to pay these costs, you would be leaving the injured party or parties without a way to get the treatments they need.

Because of that possible outcome, ACT has made CTP a requirement for vehicle owners.

If you believe that you’re eligible to receive compensation after a motor vehicle accident, it can be a good idea to find a lawyer to assist you with your claim. Our expert team at Gerard Malouf & Partners Compensation, Medical Negligence & Will Dispute Lawyers are happy to offer you a free consultation and guide you through the process.