What is Compulsory Third Party Insurance in Queensland?

Compulsory Third Party Insurance (CTP) forms an essential part of vehicle registration in Queensland, it comes with your registration. The insurance is intended to do the following:

• Provide road users including drivers, passengers, cyclists and pedestrians with access to compensation for injuries caused by the negligence of another motor vehicle driver in Queensland.
• Provide protection for drivers who might be legally obligated to pay compensation for injuries to other people (third parties) in the event of an accident where the driver is at fault.

What does CTP insurance cover?

CTP insurance coverage is designed solely to cover the claims made due to physical injuries sustained in vehicle accidents.

It does not compensate for property damage and does not cover injuries of the person responsible for the accident. The primary purpose of having a CTP Insurance policy in Queensland is to provide financial protection against legal liabilities if you or the person driving your vehicle is the at-fault party in a motor accident causing injury or death to other people.

The Importance of CTP Insurance

Having CTP Insurance means drivers are financially covered for the cost of injuries inflicted upon other people in an accident; this is important, as medical bills can amass significantly. It protects not only drivers but also passengers, cyclists, pedestrians, and other road users affected in a mishap. The claim for compensation can be made regardless of the financial standing and insurance status of the faulty driver.

Who provides CTP insurance in Queensland

In Queensland, there are three CTP insurance providers for compulsory third party insurance: Allianz Australia Insurance Limited, QBE Insurance (Australia) Limited, Suncorp Insurance and Finance, and AAI Limited.  RACQ stopped offering CTP in Qld on 1 October 2023 but does have existing policies.

Who administers the CTP scheme?

The Motor Accident Insurance Commission (MAIC) ensures the efficient administration of the Compulsory Third Party (CTP) scheme in Queensland.

Operatively, MAIC serves a number of roles:

1. It regulates insurance premiums and ensures compliance within the scheme. Primarily, MAIC works to ensure that insurance premium prices are affordable and equitable, scrutinising all proposed premium changes thoroughly before approval.
2. All notices to make a CTP claim must be made via MAIC - expert car and road injury lawyers can help you complete and lodge these forms which provide notice to the at-fault drivers CTP insurer of your intent to make a claim.
3. MAIC also manages the Nominal Defendant, which provides compensation in cases where the at-fault vehicle is unidentified or unregistered (such as hit and run accident claims).

Common Exclusions in CTP Insurance Policies

It's crucial to note that CTP insurance in Queensland does not cover the at-fault driver's injuries, vehicle damage, or damage to other people's property. Moreover, if an accident does not involve injury to anyone but the driver responsible (single vehicle accidents), CTP will not provide coverage.

Furthermore, if a vehicle is unregistered or if the driving behaviour was illegal at the time of the accident (like drink-driving), claims may be rejected.

Consequences of driving without vehicle registration

Driving without a vehicle registration, and by implication without CTP insurance, is illegal and can have significant consequences in Queensland. If caught, this act is liable to hefty fines and, in the case of an accident, the potential and severe financial implications if they are found at fault and there are injury claims.

Role of Lawyers in CTP Insurance Claims

Professional lawyers play a vital role in helping accident victims navigate the complex CTP insurance claims process. If you believe you're entitled to make a CTP claim, it's often beneficial to seek legal advice. Lawyers can explain your rights, obligations, and potential entitlements, simplifying the process and ensuring you obtain adequate compensation.