Questions & Answers
This information is specific to QBE CTP insurance policies. If you have a more general question about your insurance, please click here >>
Q. What is Compulsory Third Party Insurance?
A. Compulsory Third Party (CTP) insurance in Queensland is compulsory insurance that is included in the registration costs of your motor vehicle through Queensland Transport. The CTP insurance protection is privately underwritten by Insurers that hold a licence to issue CTP insurance in Queensland. It covers the negligent driver for the liability of bodily injury caused to others involving the operation of your vehicle. This includes the driver(s) and passengers in other vehicle(s) involved in the accident, passengers in your vehicle, push-bike and motor-bike riders and any pedestrians.
Q. Why is CTP Insurance mandatory?
A. The Queensland Government legislated in 1936 for CTP to be made compulsory and provide protection to persons injured as a result of the actions of other negligent drivers involving the operation of driving motor vehicles. The intention of the CTP coverage is to protect the injured person for ongoing medical and hospital costs, general damages, loss of income and in the case of severe injuries, the on-going care of the injured person which may be for the remainder of that person's life.
Q. What does ‘Third Party’ mean?
A. As the title suggests, a third party is everyone else involved in the motor vehicle accident which includes the drivers and passengers of all vehicles involved, including push-bikes and pedestrians, however excluding the driver of the 'at-fault' motor vehicle.
Q. What is covered by my policy?
A. The CTP policy attached to your registration is a Statutory Cover that covers the drivers of your vehicle for their liability for costs of the injuries caused to others as a result of the negligent driving of the motor vehicle.
Q. What is not covered by my policy?
A. The CTP policy only covers claims made against the driver of your vehicle for injuries caused to other persons in an accident. It does not cover any accidental damage to other vehicles or to property, nor any damage to your vehicle as a result of a motor vehicle accident.
Q. What if I am injured in an accident?
A. If you are injured and the driver of another vehicle involved in the accident is subsequently deemed to be at fault, your CTP claim for your injuries is met by the CTP insurer of the other vehicle. However, if you are at fault in the motor vehicle accident, then you have no cover at all under the Queensland CTP Scheme Legislation.
Q. What if I injure someone else in an accident?
A. As long as your vehicle is currently fully and correctly registered through Queensland Transport therefore having a CTP policy in force, then the claims by another person made against you for your negligent driving will be managed on your behalf by your CTP insurer.
Q. How is the CTP rate calculated?
A. The rate charged by CTP insurers is required to be between a minimum and maximum premium range (per Class of vehicle) as set by the Queensland Government's Motor Accident Insurance Commission on a quarterly basis. The rate allowed to be charged takes into account the frequency of accidents and the average claims costs for each Class of vehicle, whether or not the owner of the vehicle has a right to claim an Input Tax Credit for the GST, and includes an amount for the CTP insurer's administration and claims handling costs.
Q. Do GST credits apply to CTP?
A. There are two premiums for each vehicle Class under the Queensland Scheme. A 'private' premium (no Input Tax Credit Entitlement) does not provide the vehicle owner with a Tax Invoice after payment of the registration and the GST paid in the CTP premium is not claimable from the Australian Tax Office. A 'business' premium (which has an Input Tax Entitlement) does provide the vehicle owner with a Tax Invoice issued by Queensland Transport along with the new registration label and the GST is claimable from the ATO. The Vehicle Registration Notice issued for each registration renewal to you by Queensland Transport shows on the second page under the insurer information either (NO ITCE) representing a private premium or (YES ITCE) for a business premium. If on review, you believe the tax status is incorrect, you should contact Queensland Transport on 13 23 80, selection option 1 and then option 3, to advise them of your correct tax status and Queensland Transport will issue a new Vehicle Registration Renewal Notice for you to pay. This vehicle registration renewal notice re-issue takes up to 14 days to be received. (Do not allow your vehicle rego to expire in this change process otherwise you will be charged a loading for the late payment.)
Q. What is Driver Serious Injury cover?
A. Driver Serious Injury (DSI) cover is provided by some QLD CTP insurers to cover the 'at-fault' driver injured or killed in an accident. This cover is additional to the CTP Statutory cover that is required under the Government State Legislation to be provided to motor vehicle owners for third party claims as a result of the negligent driving of the motor vehicle. This additional DSI policy covers the at-fault driver for serious permanent injuries such as Quadriplegia, Paraplegia, Permanent Total Disablement, Loss of use of a limb (and Death). The DSI cover does not provide cover for the full CTP Statutory coverage such as loss of income, medical and rehabilitation costs and on-going possibly life-time care for the seriously injured.
Q. Are there any differences between CTP Insurers?
A. Yes there are differences. Firstly in the CTP premium charged by CTP insurers for each vehicle Class. As mentioned above, the Queensland Government sets a minimum and maximum premium range per Class and the CTP insurers file a premium every three months. Therefore the CTP premiums of each insurer may (and usually do) change every three months for each vehicle Class. In addition to the premium, there are differences in the coverages under the DSI covers provided to the 'at-fault' driver by each insurer. A review of the DSI coverage provided by each insurer is required to see which best meets your insurance needs. This is important especially as the maximum claim per policy currently ranges from $250,000 up to $1,000,000 between the QLD CTP insurers.
Q. How do I take out a CTP policy?
A. This depends on the current registration status of your vehicle if:
- you are purchasing a brand new vehicle (or an unregistered vehicle) from a dealer, then you have the option to advise the dealer of your requirements for your CTP insurer,
- your vehicle is due for renewal through the Queensland Transport vehicle registration process, then you have the choice of CTP insurer as long as the registration is not past the due date shown on the Queensland Transport notice (refer to the back of the Queensland Transport Vehicle Registration Notice for the payment and selection of CTP insurer options),
- your vehicle is registered interstate and is still currently registered, you have the option to select your new QLD CTP insurer when completing the Queensland Transport re-registration paperwork, or
- your vehicle is currently unregistered then you have the choice of which CTP insurer to purchase your CTP Certificate from.
Q. How do I cancel my CTP policy?
A. If you purchase a CTP Certificate from a CTP insurer, and then don't utilise the Certificate to register the motor vehicle with Queensland Transport within 30 days of the Certificate issue date then returning the original of the CTP Certificate to the CTP insurer will result in a full refund of the CTP premium previously paid. In all other cases where the required cancellation is mid-term in a registration period, the only way a CTP policy can be cancelled is if the Queensland registration is cancelled to Queensland Transport. Where the registration is cancelled and the registration plates are handed into Queensland Transport, any refund of the CTP insurance component will be included in the registration refund cheque from Queensland Transport.
Q. What if I sell my car?
A. If you sell your vehicle registered, then your current CTP insurance automatically transfers to the new owner with the vehicle registration. If you intend to sell the vehicle unregistered, then when you take off the registration plates and hand them in to Queensland Transport then cancel the registration, you will then receive any refund of the CTP insurance component in with the registration refund cheque from Queensland Transport.
Q. What is your definition of fleet?
A. A fleet comprises 5 or more vehicles.
Q. Are commissions payable to intermediaries for the procurement of CTP insurance?
A. Yes, commissions can be negotiated with QBE for the procurement of CTP insurance for their clients.