Your Guide to Everything Green Slips
Compulsory Third Party Insurance (CTP) is commonly referred to as a greenslip. They are also called green slips, CTP, CTP Insurance, and greenslip insurance. Green slip covers compensation for when someone is injured or killed in an car accident.
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.
There are two schemes you are taking part in when you buy a greenslip, including the Third Party Insurance scheme which is governed by the Motor Accidents Compensation Act 1999, and the Lifetime Care and Support scheme which is covered under the Motor Accidents (Lifetime Care and Support) Act 2006.
Third Party Insurance Scheme
The Motor Accidents Compensation Act 1999 regulates the third party insurance scheme.
When someone is killed or seriously injured in a car accident, the third party insurance scheme gives them monetary compensation.
The reason this schemes was created was to make certain that financial means are available, no matter whether the owner or driver of a car can afford insurance. This means the insurer is covering the driver’s liability for a death or injury that they may cause.
Both economic and 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 costs. Loss of income would also be a form of economic loss.
Who and What is Covered?
The greenslip will provide cover for the following:
- Give financial compensation to those who are killed orinjured in an auto accident. To a lesser degree green slips will also cover the driver who causes the accident, but primarily compensation is for drivers of the other vehicle, their passengers, pedestrians, motorcyclists, or those riding bicycles.
- Compensation for injury and death caused by trailers on the towing vehicle.
A greenslip will not cover the following:
- The driver that causes the accident. However, if the at fault driver is so terribly injured that the Lifetime Care and Support Scheme would apply, then the scheme would cover the at fault driver.
- Your vehicle damage or property damage.
- Other people’s vehicles or property damage.
- 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 vehicle
- Your driving history
- Your history of CTP claims
You might investigate several insurers before purchasing a greenslip, as the prices can differ.
This article contains general advice about car insurance. The author has not taken into account your financial situation or needs and you should consider whether the advice provided is appropriate for your own circumstances before relying on it.
Filed Under: Understanding Insurance
