CTP is short for “compulsory third party”. A CTP claim is a claim for the injuries or death caused by a motor vehicle accident.
CTP insurance is insurance which responds to a CTP claim for personal injuries as a result of:
- the driving of a motor vehicle;
- a collision, or action taken to avoid a collision, with a motor vehicle;
- a vehicle running out of control; or
- a defect in a motor vehicle causing loss of control of a vehicle while it is being driven, which is caused, wholly or partly, by a person other than the person who received an injury.
How does a CTP claim work?
The Motor Accident Insurance Act of 1994 governs CTP claims in Queensland. These claims proceed through a series of steps, which must be completed before an injured person can begin Court proceedings.
The first step is to lodge a Notice of Accident claim to the insurer, to which the insurer must confirm compliance.
This now allows an injured person to have their rehabilitation expenses funded by the insurer during their CTP claim, provided that liability is admitted. Once injuries are stable and stationary, independent medical examinations can be arranged to assess the nature of the individual’s injuries and their ongoing impact.
A Compulsory Conference is the final step in the pre-Court process. The insurer and the injured person, along with their legal representatives, attend this settlement conference. In a genuine attempt to resolve the claim, the parties exchange settlement offers. The majority of claims settle at this stage.
CTP is a statutory policy of insurance provided to all Queensland vehicles. This is “compulsory” because it is included with the payment of registration for your vehicle.
There are four (4) licensed insurers in Qld:
- AAI Limited (trading as Suncorp Insurance)
- Allianz Australia Insurance Limited
- QBE Insurance (Australia) Limited
- RACQ Insurance Limited
Once a settlement fee for existing and ongoing damages has been determined, the insurer has to pay the claimant. A personal injury settlement is “once and for all,” and an injured person cannot claim any additional compensation for their injuries after the claim is settled. This is why it is critical for people who have been injured in a car accident to seek legal advice about their rights and what they are entitled to.