Insurance Curator 
Australia’s compulsory third party (CTP) insurance can feel more complicated than it should. Eight states and territories run eight different schemes, with different names, regulators, price-setting rules and injury benefits. Some people pay it as a “green slip” at registration, others never see a separate bill, and many assume it covers far more than it does.
This guide is written to ease that confusion. We’ll explain what CTP is, how each state and territory runs it, and what it means for people who are injured and cannot work. We’ll also look at the optional add-ons, such as property damage and comprehensive cover, that sit alongside CTP, so you can see where your protection starts and stops.
Please note: Premiums, thresholds and benefit levels change regularly. Treat the figures here as general guidance and confirm current details with your state regulator or scheme before making decisions.
What Is Compulsory Third Party (CTP) Insurance in Australia?
CTP insurance is a legally required cover attached to every registered vehicle in Australia. It pays compensation to people who are injured or killed in a crash caused by the vehicle you register. That includes other drivers, passengers, pedestrians and cyclists, and in some states the at-fault driver as well.
The word “third party” can be misleading. If you want a broader grounding in the term, our explainer on what third party insurance means shows how the idea works in other contexts. In Australia, CTP is about people, not property.
What CTP Covers
- Medical and hospital costs arising from a motor accident
- Rehabilitation and treatment, including physiotherapy and psychological support
- Loss of income while an injured person cannot work
- Attendant care and home modifications for serious injuries
- Compensation for pain and suffering in some schemes, usually above a severity threshold
- Funeral costs and dependants’ support where a person dies
What CTP Does Not Cover
- Damage to your own vehicle or anyone else’s
- Damage to fences, buildings, shopfronts or other property
- Theft, fire, hail or flood damage
- Legal liability for property damage you cause
- Your own long-term income if the injury happens outside a motor accident
That last point matters for the disability and income replacement theme of this article. CTP responds only to injuries from motor accidents, so it is one layer of protection rather than a complete safety net.
Why Australia Has Eight Different CTP Schemes
Each state and territory regulates motor accident compensation under its own laws. This is why a driver in Sydney and a driver in Melbourne buy cover in quite different ways. There are two broad models:
- Privately underwritten schemes, where you choose from licensed insurers (NSW, Queensland, South Australia and the ACT)
- Government-run schemes, where a state body collects premiums through registration and pays claims (Victoria, Western Australia, Tasmania and the Northern Territory)
There are also two broad approaches to compensation:
- Fault-based: an injured person generally needs to prove someone else was at fault to receive full compensation.
- No-fault: treatment and income support are paid regardless of who caused the crash, at least for a period or in certain situations.
Most Australian schemes are now hybrids. They provide some no-fault benefits and allow fault-based claims for larger payouts. If you’d like to see how the same fault versus no-fault debate plays out elsewhere, our guide on how state law affects your car insurance claim under no-fault and fault regimes offers a helpful comparison from the US.
State-by-State Guide to CTP Schemes
The table below summarises each scheme at a glance. We then explore each one in more detail.
| State / Territory | Scheme Type | Who Provides Cover | Main Regulator or Scheme Body | How You Pay |
|---|---|---|---|---|
| New South Wales | Privately underwritten | Licensed insurers | SIRA | Green slip, separate from registration |
| Queensland | Privately underwritten | Licensed insurers | Motor Accident Insurance Commission | Included with registration |
| Victoria | Government-run | Transport Accident Commission | TAC | Included with registration |
| South Australia | Privately underwritten | Licensed insurers | CTP Regulator | Chosen at registration |
| Western Australia | Government-run | Insurance Commission of WA | ICWA | Included in vehicle licence fee |
| Tasmania | Government-run | Motor Accidents Insurance Board | MAIB | Included with registration |
| Northern Territory | Government-run, no-fault | Motor Accidents Compensation Commission | MACC | Included with registration |
| ACT | Privately underwritten | Licensed insurers | Motor accident injuries regulator | Chosen at registration |
New South Wales: The Green Slip
NSW is where the term “green slip” comes from. It is the state’s CTP insurance, and you must hold a current one to register your vehicle. Licensed insurers compete on price, and the State Insurance Regulatory Authority (SIRA) oversees the scheme.
Under the Motor Accident Injuries Act 2017, anyone injured in a NSW motor accident can claim no-fault statutory benefits for treatment, care and weekly income support, typically for up to 26 weeks. Longer benefits generally depend on the injury being more serious. Those not at fault may also claim common law damages for larger losses.
Key features to understand:
- Insurers must offer you a policy, although prices vary between them.
- Premiums are set within SIRA-approved bands, which is why comparing quotes is worthwhile.
- SIRA’s Green Slip Price Check lets you compare insurers before you buy.
- Your slip is linked to your registration electronically, so you rarely handle a physical certificate.
Queensland: Four Insurers and Capped Premiums
In Queensland, CTP is provided by a small group of licensed insurers, and the Motor Accident Insurance Commission (MAIC) regulates the scheme and the maximum premiums. You select your insurer when you pay your registration.
Queensland is largely a fault-based scheme with statutory rules on how claims are made and assessed. Strict time limits apply, so injured people should seek advice early. The scheme also includes a Nominal Defendant, which responds when the at-fault vehicle is unidentified or uninsured.
Victoria: The TAC No-Fault Model
Victoria’s Transport Accident Commission (TAC) is a government body that collects the premium as part of your registration. Because it is a no-fault scheme for core benefits, an injured person can generally receive treatment and support regardless of fault.
The TAC provides:
- Medical and rehabilitation support
- Income support for people who cannot work because of their injuries
- Funeral and dependant benefits
- Access to common law damages for serious injuries
This model is simple for consumers because there is no insurer to choose. The trade-off is that you cannot shop around for a better price.
South Australia: Private Insurers and Lifetime Support
South Australia uses licensed private insurers regulated by the CTP Regulator. The state also operates a Lifetime Support Scheme for people with very serious injuries, covering lifelong care and support needs on a no-fault basis.
South Australia has had ongoing discussion about reform of its CTP arrangements, so it is sensible to check the regulator’s website for the latest position before you register or renew.
Western Australia: ICWA and Catastrophic Injury Support
In WA, CTP is administered by the Insurance Commission of Western Australia (ICWA), and the premium is built into your vehicle licence fee. The scheme is largely fault-based, meaning injured people typically need to show another driver was at fault.
WA also operates a catastrophic injuries support scheme, which provides no-fault lifetime care for people with the most severe injuries, regardless of who caused the crash.
Tasmania: MAIB
Tasmania’s Motor Accidents Insurance Board (MAIB) collects premiums with registration and manages claims. The scheme combines no-fault support for essential treatment and care with fault-based common law claims for compensation.
Northern Territory: A Fully No-Fault Scheme
The Northern Territory’s Motor Accidents Compensation Commission runs one of the country’s most distinctive schemes. It is a no-fault system that pays benefits to anyone injured, without needing to prove blame. Benefits are defined by statute and cover treatment, income support and other costs.
ACT: Private Insurers and the Newer Injury Scheme
The ACT introduced a reformed Motor Accident Injuries scheme in 2020. It uses licensed private insurers and provides no-fault benefits for treatment and income support, with additional compensation available in certain circumstances. As with NSW, you choose your insurer when you register.
How CTP Insurance Supports Disability and Income Replacement
This is where CTP becomes especially relevant for people planning for the financial effects of injury. A serious road accident can mean months or years of reduced earnings, so understanding what CTP replaces matters.
Weekly Income Support
Most schemes provide weekly payments for people who cannot work because of a motor accident. These payments are typically a percentage of pre-accident earnings, often subject to a cap. They may reduce or end after a set period unless the injury is more serious.
Medical and Rehabilitation Costs
CTP generally pays for reasonable and necessary treatment connected to the accident. This can include surgery, physiotherapy, psychological counselling, equipment and in-home care.
Lifetime Care for Severe Injuries
For catastrophic injuries such as spinal cord injury or severe brain injury, several states provide lifetime care and support on a no-fault basis. This is a significant protection and is separate from, though sometimes coordinated with, support available through the National Disability Insurance Scheme (NDIS).
Where CTP Falls Short
CTP is not a replacement for personal income protection. Consider these gaps:
- Injuries not caused by a motor accident are not covered.
- Income support often has time limits and caps.
- At-fault drivers may receive reduced benefits in some states.
- Conditions such as illness or non-motor injuries need other cover.
This is why many Australians pair CTP with income protection insurance and total and permanent disability (TPD) cover, often held through superannuation. If you’re still building your understanding of broader protection, our overview on unlocking peace of mind with all types of insurance is a useful place to start.
CTP vs Income Protection vs TPD: How They Compare
| Feature | CTP Insurance | Income Protection | TPD Cover |
|---|---|---|---|
| Legally required? | Yes | No | No |
| Triggers | Motor accident injury | Illness or injury preventing work | Permanent disability |
| Pays | Treatment, care, income support | Monthly percentage of income | Lump sum |
| Who you choose | Depends on state | You choose the provider | You choose, often via super |
| Covers non-motor injuries? | No | Yes | Yes, subject to definitions |
Common Myths About CTP Insurance in Australia
Misunderstandings about CTP are common, and they can leave people exposed. Here are the most frequent ones.
- Myth: CTP covers damage to my car. Fact: It does not. It covers injury to people only.
- Myth: CTP covers damage I cause to other people’s cars. Fact: You need separate property damage cover.
- Myth: A green slip is the same everywhere in Australia. Fact: “Green slip” is the NSW term, and other states use different systems.
- Myth: If I’m at fault, CTP won’t help me. Fact: Many schemes provide some no-fault benefits to at-fault drivers, although they can be more limited.
- Myth: The cheapest slip is always the best. Fact: Within a state, the cover is largely standardised, but service quality and add-ons can differ.
- Myth: CTP replaces income protection. Fact: It only responds to motor accident injuries.
Beyond CTP: Optional Car Insurance Add-ons
Because CTP covers only injuries to people, most drivers also consider voluntary car insurance. There are three common tiers.
Third Party Property Damage Insurance
This pays for damage you cause to other people’s vehicles and property, usually up to a set limit such as several million dollars. It does not cover your own car. It is the most affordable voluntary option and a sensible minimum for most drivers.
Third Party Fire and Theft Insurance
This includes everything in third party property damage and adds cover for your own vehicle if it is stolen or damaged by fire. It suits older vehicles with modest market value.
Comprehensive Car Insurance
Comprehensive cover is the broadest option. It typically includes:
- Damage to your own car from accidents, theft, fire, storms and vandalism
- Third party property damage liability
- Optional extras such as hire car, windscreen cover, roadside assistance and a choice of repairer
Premiums depend on your car’s value, your age, your postcode and your claims history. If you want to understand how these factors work, our guide on 12 premium drivers and how they impact rates breaks them down in plain English.
Comparing the Add-on Options
| Cover Type | Your Injuries | Others’ Injuries | Others’ Property | Your Own Car |
|---|---|---|---|---|
| CTP only | State scheme rules | Yes | No | No |
| CTP + Third Party Property | State scheme rules | Yes | Yes | No |
| CTP + Third Party Fire & Theft | State scheme rules | Yes | Yes | Fire and theft only |
| CTP + Comprehensive | State scheme rules | Yes | Yes | Yes |
CTP for Motorcycles, Trailers and Other Vehicles
CTP applies to motorcycles as well as cars, and premiums are often higher because riders face a greater risk of serious injury. If you ride, it is worth understanding how liability and own-damage cover differ. Our guide on best insurance for motorcycles explains liability, comprehensive and custom parts coverage, which is helpful background even though it is not Australia-specific.
Other points worth noting:
- Trailers are typically covered under the towing vehicle’s CTP, but rules vary by state.
- Caravans and campervans need their own consideration,