Compulsory Third Party Insurance

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 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 in the Territory 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 this legislation is a matter for the courts.

For claims arising from accidents before 1 October 2008, the relevant legislation is the Road Transport (General) Act 1999 and the Road Transport (Third-Party Insurance) Regulation 2000. 

Your vehicle is covered for CTP while it is registered (see the vehicle registration certificate).

Documents

Name	Released	Type
Frequently Asked Question 1	10 July 2009	PDF [10Kb]
All Frequently Asked Questions	10 July 2009	PDF [46Kb]

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