ACT Compulsory Third Party Insurance Frequently Asked Questions
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What is CTP insurance?
Compulsory Third Party (‘CTP’) insurance is personal injury insurance that is
mandatory for every motor vehicle registered in Australia.
CTP insurance indemnifies vehicle owners and drivers who are legally liable
for personal injury caused to any other party in the event of a motor vehicle
accident. It will cover you for personal injury claims made against you by
other road users such as drivers, passengers, pedestrians, cyclists,
motorcyclists and pillion passengers involved in a motor vehicle accident.
All personal and fatal injury claims resulting from motor vehicle crashes that
involve an ACT registered vehicle are handled by third party insurers
licensed to provide CTP insurance in the ACT. Currently, Insurance Australia
Limited (trading as NRMA Insurance or ‘NRMA’) is currently the only CTP
Insurer in the ACT. However, this is expected to change in the near future.
Vehicles which are owned by the Commonwealth of Australia or the
Australian Capital Territory are not required to be insured but the
governments involved meet claims under their own arrangements in the same
way as an insurer would.
As the CTP insurer is named on the vehicle registration certificate, a separate
CTP certificate does not need to be issued.
Since 1 October 2008, new CTP legislation applies in the ACT to all claims
arising from accidents occurring from that date onwards. This legislation is
the Road Transport (Third-Party Insurance) Act 2008 and the Road Transport
(Third-Party Insurance) Regulation 2008. This legislation is administered by
the Department of Treasury. CTP claims are also subject to the Civil Law
(Wrongs) Act 2002 and the Limitation Act 1985, which are administered by
the Department of Justice and Community Safety. The interpretation of
legislation is a matter for the courts.
For claims arising from accidents before 1 Oct