Your Guide to Everything Green Slips
When someone is hurt or dies in an car accident, compensation is supplied through an insurance policy known as a green slip.
All cars registered in New South Wales must be covered by a greenslip. In fact, it is required by law. However, no greenslip is required for a trailer. The greenslip of the vehicle doing the towing will cover the trailer.
Compulsory Third Party Insurance (CTP) is commonly referred to as a greenslip. They are also called green slips, CTP, CTP Insurance, and greenslip insurance.
There are two schemes you are taking part in when you buy a greenslip. The Motor Compensation Act 1999 standardizes the Third Party Insurance scheme, and the Motor Accidents (Lifetime Care and Support) Act 2006 controls the Lifetime Care and Support scheme.
Third Party Insurance Scheme
The Motor Vehicle Act 1999 provides regulatory support for the third party insurance scheme.
When someone is killed or seriously hurt in a car accident, the third party insurance scheme gives them monetary recompense.
The reason this schemes was created was to make certain that financial means are available, no matter whether the owner or driver of an auto can afford is. This means the insurer is covering the driver against being liable for a death or injury that they may cause.
Either economic or non-economic losses are compensated. Non-economic losses would refer to loss of quality of life, as well as pain and anguish. Economic losses would mean medical and hospital costs as well as rehabilitation. Loss of income also is applied here.
For someone to warrant being compensated there must be someone at fault in the accident. This is called fault based, and it is the reason for this acts development. The driver at fault is not entitled to compensation.
The fault based environment of the scheme has been amended to offer some benefits to at fault drivers. However, the act is still considered fault based.
Who and What is Covered?
The greenslip will provide the following:
- Give financial recompense to those who have died or been hurt in an auto accident. To a lesser degree this will also cover the driver who causes the accident, but primarily refers to drivers of the other vehicle, their passengers, pedestrians, motorcyclists, or those riding bicycles.
- Compensation for trailers, which are covered by the greenslip of the towing vehicle.
A greenslip will not cover the following:
- The driver that causes the accident under the scheme of the prevailing greenslip. However, if the at fault driver is so terribly injusred that the Lifetime Care and Support Scheme would apply, then the scheme would complete cover the at fault driver.
- Your vehicle damage or property damage is not covered.
- Other people’s vehicles or property damage is not covered.
- You are not covered if your car is stolen.
How much will you have to pay for a Green Slip?
Here are some of the issues taken into consideration by insurers, which influence Green Slip prices:
- Where you live
- What type of vehicle you are driving
- How old is the vehicle
- How does the vehicle run
- How old is the owner of the vehicle
- How old is the driver of the vehicleYour driving history
- Your history of CTP claims
You might do well to investigate several insurers before purchasing a greenslip, as the prices can differ quite a bit.
Filed Under: Understanding Insurance
