Compulsory liability insurance (or CTP insurance) covers drivers of vehicles responsible for a traffic accident due to personal injury or other road users. CTP insurance is a mandatory part of your vehicle registration. Although insurance needs to be purchased, you can choose an insurance company. Depending on your situation, you may get certain benefits. Although CTP insurance companies do not offer discounts on CTP insurance, they may offer discounts on other products they offer (e.g. Comprehensive insurance policies or roadside assistance).
Your compulsory liability insurance (CTP) is paid at the same time as your car registration. Since your vehicle registration is mandatory, so is CTP insurance.
In accordance with the Motor Vehicle Act 1959, your CTP insurance premium is covered by a compulsory insurance policy. The CTP regulator determines the minimum conditions for the CTP insurance policy.
What is covered?
The insurance policy protects you (and other users of your registered and insured vehicle with or without your consent) from the financial consequences of injury or death to other road users when using your vehicle.
If you are the culprit ultimately, you cannot make claims. However, most accidents involve errors between drivers. If you are not sure, you can file a claim with the insurance company for the other driver you believe caused the accident.
Suppose unknown or unregistered vehicles (and therefore uninsured vehicles) are involved. In that case, the regulatory agency under the Named Defendants program will provide insurance and assign handling of your claims to one of the insurance companies.
Different coverage for a Child’s Claim
The CTP program provides incorrect insurance to children under the age of 16 in an accident in South Australia (for example, the child is a minor driver) to obtain the necessary and reasonable treatment, care and support. This insurance also applies when the vehicle is registered between countries/regions.
Lifetime Support Scheme
Suppose you have suffered a severe lifelong injury in a car accident in South Australia. In that case, you may be entitled to necessary and reasonable treatment, care and assistance under the Lifetime Support Scheme (LSS) despite the errors.
Depending on your situation, if you have not had an accident, you may be eligible to file a CTP claim as well as a claim under LSS.
What is not covered?
CTP insurance does not cover:
- Property damage (including vehicles or their property)
- Cyclists who injure themselves or other road users
- Has caused injury or death to another participant in a road race
- Drivers in a single-car accident, for example, if you hit a tree (except for severe life injuries covered by the lifetime plan).
If you have not fulfilled the obligations in the insurance policy and your actions have caused damage, the insurance company has the right to recover the damage caused by accident.
Liability under the insurance policy does not include:
- Driving under the influence of alcohol or drugs
- Dangerous driving
- Intentional damage
- Drive a vehicle without the owner’s permission
- Driving without a current driving license
- Driving with an unsuitable or overloaded vehicle
- Violation of Section 43 of the Road Traffic Act of 1961 (hit-and-run).