Questions & Answers
Questions and Answers
This information is specific to QBE CTP insurance policies held in New South Wales. If you have a more general question about your insurance, please click here.
Q. What is CTP insurance?
A. CTP insurance is compulsory insurance privately underwritten by licensed insurers. It covers the negligent ‘at-fault’ driver for their liability to compensate third parties for bodily injury caused by them involving the operation of their vehicle. This includes the driver(s) and passengers in other vehicle(s) involved in the accident, passengers in your vehicle, pedestrians, push-bike and motorcycle riders.
Q. Why is CTP insurance mandatory?
A. The New South Wales Government legislated in 1942 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 ongoing 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, pedestrians, push-bike riders and motorcycle riders.
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’, you may be entitled to benefits under CTP insurance for your injuries and this would be covered 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 New South Wales CTP Legislation. Recent legislative changes mean you may be eligible for benefits under the Motor Accidents (Lifetime Care and Support) legislation if your injuries are severe, but these benefits only cover medical and rehabilitation services, and do not cover loss of income or general damages.
Q. What if I injure someone else in an accident?
A. As long as your vehicle is currently registered through the Roads and Traffic Authority and therefore has a CTP policy in force, then the claims made by another person 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 rates charged by CTP insurers are determined by each insurer and are governed by the Motor Accidents Authority under the Premium Determination Guidelines. Premium rates are published by the authority on their website. The determination of rates 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 New South Wales Scheme. A 'private' premium (no Input Tax Credit entitlement) does not provide the vehicle owner with a Tax Invoice and the GST paid in the CTP premium is not claimable from the Australian Tax Office. A 'business' premium (has an Input Tax Credit entitlement) does provide the vehicle owner with a Tax Invoice and the GST is claimable from the ATO. In purchasing your CTP insurance it is important to consider the purpose for which the vehicle is being used.
Q. Are there any differences between CTP insurers?
A. Yes there are differences. Firstly there are differences in the CTP premiums charged by CTP insurers for each vehicle Class. There are strict guidelines under which rates are calculated and insurers can change their rates at any time by abiding with these guidelines. In addition to the premium, there are differences in the service levels provided by each insurer in the areas of policy fulfilment and claims management.
Q. Does QBE offer any discounts on CTP insurance?
A. Yes QBE offers a Good Driver Discount for drivers who have 0 demerit points. Please note this discount is dependent on the type of vehicle as well as the age of the vehicle and the owner (and other drivers).
Q. What is a Good Driver Discount?
A. Where applicable, if a driver has 0 demerit points, QBE may offer a discounted CTP premium. This offer is dependent on the type of vehicle as well as the age of the vehicle and owner (and other drivers).
Q. How do I take out a CTP policy?
A. If you currently do not have CTP insurance for your vehicle or your current policy is due for renewal, simply contact QBE on 133 723.
Q. How do I cancel my CTP policy?
A. You may cancel your CTP insurance by contacting your CTP insurer, however proof of deregistration of the vehicle is required. Proof of deregistration is provided by the Roads and Traffic Authority once you hand in your registration plates. A refund cheque is then issued to you.
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, when you deregister the vehicle with the Roads and Traffic Authority and cancel the registration, you will receive a refund from your insurer.
Q. What is the Lifetime Care and Support Scheme?
A. The Lifetime Care and Support Scheme (LTCS) was established under the Motor Accidents (Lifetime Care & Support) Act 2006 to provide treatment, rehabilitation and attendant care to people who have been severely injured in a motor accident regardless of who was at fault in the accident. Eligibility for the Scheme is determined by the severity of the person's injuries. Most people who are eligible will have a spinal cord injury or moderate to severe brain injury or in some cases serious burns or amputations. The Scheme applies to all severely injured people and is administered by the Lifetime Care & Support Authority (LTCSA). There are levies in your total premium which fund this scheme. Refer to www.maa.nsw.gov.au for more information.