Compulsory third party car insurance (CTP) is also known as a green slip. It is a compulsory requirement for all motor vehicles and must be obtained before registration can be processed. CTP policies can vary significantly between the big insurance companies, and so you should always obtain a few car insurance quotes before you purchase a policy.
CTP covers any personal injuries that you might cause to other drivers when you have an accident and you are at fault. You are generally not required by law to insure yourself against any damage to other people’s property, including their car, but you must insure against personal injury. When serious car accidents occur and a driver who is not at fault sustains a serious injury, they can make a claim on the driver’s CTP policy.
You can not make a CTP claim for damage to your car or other property. If your property is damaged, including your car, you must make a claim against the driver who is at fault. If the driver at fault has comprehensive car insurance, you can claim on that policy. If they don’t, you must launch civil proceedings against the driver at fault unless you have compulsory third party insurance yourself.
CTP policy costs are usually lower than comprehensive policies. They depend on a number of factors, but the primary determinants of CTP policy costs are age; driver record; and the type of car you have. Most policies will range from $350 to $700, and you should definitely shop around.
You will not be able to register your car until the CTP policy has been purchased for a the same period as your registration. The policy will be renewed when the registration is renewed, and you can get quarterly CTP policies so long as your car is on a quarterly registration cycle.
CTP policies protect you and the driver you share the road with from permanent disability and are an essential part of our road rules system. Driving a vehicle that does not have a CTP policy, and is hence unregistered, is very serious and can land you in big trouble the least of which is a big fine. Be responsible and obtain a CTP green slip and keep the roads fair.