What is the QLD third-party (CTP) insurance scheme? Queensland first introduced the compulsory third-party scheme in 1936, and it remains widely recognised as Australia’s best driver insurance compensation system. As a result, when injured in a Queensland motor vehicle accident that is partly or wholly not your fault, you could make a CTP insurance claim and negotiate directly with the third-party insurance provider. CTP insurance can also cover damage inflicted on another person’s property.
However, the third-party insurance claims process is complex and fraught with pitfalls because CTP insurers prioritise their financial interests over yours.
A Queensland accident compensation lawyer can advise of your rights, the legal process and common barriers to a successful outcome. It’s free to know your rights. Call 1800 700 125
About CTP Insurers
Because people often only think about the CTP insurance scheme once they need to make a claim, they often have little knowledge of how it works. So we have created the ultimate guide to Understanding the Queensland Compulsory Third Party Insurance Scheme to help you learn about the system and your legal rights. We begin by defining CTP insurance.
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Queensland Compulsory Third-Party Insurance Scheme Overview
What is CTP Insurance?
Compulsory Third Party (CTP) insurance protects vehicle owners and motorists in Queensland from liability for damages if they cause injuries or death in a motor vehicle accident. To make a successful CTP claim, you must be wholly or partly not at fault for the collision.
Why is Third-Party Insurance Mandatory in Queensland?
Third-party insurance is mandatory in Queensland, so people injured in a traffic accident will be compensated regardless of the financial circumstances of the at-fault motorist.
What Does Queensland CTP Insurance Cover?
Queensland CTP insurance covers both your financial liability and that of any person who drives your motor vehicle for injury or death inflicted on others in a motor vehicle accident. Third-party insurance protects you when using Queensland roads, whether you are a passenger, pedestrian, cyclist, motorcyclist, or car driver.
Accordingly, when something goes wrong and you have a valid claim, the CTP insurer funds your lost income, medical treatment, rehabilitation, and any associated damages covered by the insurance policy. Vehicle owners can choose from several licensed insurers when buying CTP insurance, and while they all provide similar protection, they may have additional coverage options.
What is the Purpose of MAIC?
The Queensland Government created MAIC in 1994 to oversee the Compulsory third-party insurance scheme, including managing Motor Accident Insurance and Nominal Defendant finances.
The primary purpose of MAIC is to provide financial assistance to people who have incurred losses due to a motor vehicle accident, such as medical expenses, lost wages, and vehicle damage. This statutory organisation is funded by a mix of government grants and contributions from the insurance sector.
In addition to providing fair compensation, MAIC offers vital services for accident victims, such as counselling and rehab, to help injured people get back on track and recover from their losses as soon as possible.
Which Vehicles are Exempt from CTP Insurance?
All motor vehicles operating on Queensland roads must have CTP insurance, except for most caravans and trailers when towing by a registered motor vehicle.
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Securing Coverage under the Queensland CTP Insurance Scheme
Who are the Queensland Third Party Insurers?
There are currently four third-party insurers in Queensland: Suncorp, Alliance, and QBE, all of which offer identical CTP coverage. However, you can buy additional protection when you are the driver at fault in a car accident with Suncorp, QBE and Allianz.
How Do I Buy Compulsory Third Party Insurance?
It is straightforward to purchase compulsory third-party (CTP) insurance in Queensland. When registering your car with the Department of Transport and Main Roads, you pick one of the thress licensed CTP providers. Some insurers offer extra cover, which you can purchase at that time.
How Much Does Compulsory Third-Party Insurance Cost?
Your Queensland motor vehicle registration fee includes compulsory third-party insurance costs. But how much you pay depends on the following:
- Whether it is a new registration or renewal
- The type of vehicle registration
- The vehicle specifications, including the number of cylinders and axles,
- If you can claim a concession,
- The name of your chosen CTP provider
- The period you wish to register
You can get a Queensland motor vehicle registration quote here
Claiming Against a CTP Insurer Under The Scheme
When Can I Claim CTP Insurance?
When the unexpected happens, and someone is injured in a Queensland road crash that was wholly or partly the fault of another driver or vehicle owner, you can lodge a CTP insurance claim against the policy of the negligent vehicle driver or owner.
How to Make a CTP Claim for a Motor Vehicle Accident
If you are injured in an accident and the other party is at fault, you may be able to seek financial compensation through their Queensland Compulsory Third Party (CTP) insurance policy. In this case, you can seek legal advice from a compensation lawyer who advises on car accident claims. They will explain the claim process and how to negotiate a settlement with the third-party insurer. Splatt Lawyers provides free advice on a 100% no-win, no-fee basis: 1800 700 125
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What Happens When There Is a Fatal Injury?
When someone dies in a tragic car accident, the surviving financial dependents and relatives of the deceased may also be eligible to claim compensation for:
- Funeral expenses
- The financial loss incurred by the death of the primary income earner
More about wrongful death claims here
What are the Time Limits for a CTP Claim?
Queensland’s compulsory third-party legislation provides strict time limits for lodging a notice of claim after a car accident. Generally, you must submit your case:
- Within nine months of the accident date or
- Within one month of speaking with a lawyer about your claim
- If the claim is against the nominal defendant (because the other road user can’t be identified), you must lodge it within 12 weeks.
Lodging before your due date generally means early access to medical treatment and rehabilitation, while failing to meet these deadlines usually means claim denial.
Splatt Lawyers will advise you of the time constraint for your case. It’s free to be sure. Call 1800 700 125
What Happens When the Accident Vehicle is Unregistered or Unknown?
Sadly, not all Queensland drivers have a registered vehicle, and sometimes, the accident vehicle flees the scene, so how do you make your claim on third-party insurance in this case? In this circumstance, the Nominal Defendant pays your CTP compensation. Additionally, nominal defendant claims have a strict lodgement time limit, so it’s best to seek legal advice.
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Benefits and Protections under the CTP Scheme
Compensation for Injuries: Types of injuries covered by CTP insurance
Compulsory Third Party (CTP) insurance in Queensland provides financial support for those who have suffered a physical or psychological injury due to a motor vehicle collision that was not their fault.
Depending on the force of the impact, a car crash may result in severe or minor damage, and CTP insurance covers all of them. Some common types of vehicle accident injuries include:
| Whiplash | Broken Bones | PTSD | Head & Neck Injuries |
| Emotional Trauma | Burn Injuries | Concussion | Bruises & Scarring |
| Nervous Shock | Back Injury | Facial Injuries | Strains & Sprains |
| Shoulder Injury | Soft Tissue Damage | Fatal Accidents | Internal Bleeding |
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How are CTP Compensation Payouts Calculated?
Under the Queensland Compulsory Third Party (CTP) Scheme, calculations for car accident compensation payouts are based on several factors, such as:
- Injury type and severity
- The degree of your disability or impairment
- How much your injury impacts your work capacity
- Your current income and age
When you have a successful payout, you can receive compensation for your lost income and superannuation, the cost of medical expenses and rehabilitation, pain and suffering, and home care costs.
What is the Third Party Insurance Claim Process?
- Complete and lodge claim
- You receive lodgement confirmation.
- Seek Rehab and Treatment
- Liability assessment
- CTP insurer collects evidence
- Your injuries stabilise
- Negotiations for a claim payout
- Settlement payment
Legal Repercussions of Non-Compliance
What are the penalties for driving without CTP insurance?
In Queensland, there are severe penalties for driving without CTP insurance. However, it is legal to:
- Not renew your vehicle registration
- Sell an unregistered motor vehicle
- Transport an unregistered car with a trailer
- Drive an unregistered motor vehicle on privately owned roads
But, it is illegal when you use (or allow someone else to use) an unregistered car on Queensland roads, as stated in Section 20 of the Motor Accident Insurance Act. The maximum penalty for this offence is 80 units. However, there are some legal defences to this traffic offence, including:
- You believed the car had CTP insurance coverage
- That you were not operating the vehicle
- That you were not driving on public roads
- You used the car due to an emergency, so you had no choice
- You were mentally insane at the time
What are the Fines for Driving an Unregistered Vehicle?
Non-compliance with CTP legislation can have serious consequences. Driving an unregistered vehicle on public roads in Queensland can result in:
- Fines of up to $2,000
- Demerit points added to your driver’s licence
- Court appearance
- You can also be liable for damages and medical costs of the injured party.
QLD CTP Insurer FAQs
How can I find the best CTP insurance policy?
Finding the best CTP insurance policy for your needs can be challenging, as numerous third-party insurance options are available. Your best strategy is to use an online tool to compare policy terms, benefits and coverage and read Google reviews.
Can I change my CTP insurance provider?
You can change your CTP insurer in Queensland, and it’s simple. Contact your existing insurance company and let them know you want to change providers. They will advise on the next steps.
Can I make a CTP claim if the accident was partially my fault?
You can still claim CTP entitlements when you are partly at fault for a car accident. In this situation, you have contributory negligence, which means the insurer will reduce your compensation based on your contribution level.
How long does it take to process a CTP claim?
The time taken to process a successful CTP claim relies on various factors, such as the amount of evidence required, the time it takes for injuries to stabilise, and the complexity of the case. Most claims settle within six months, but some take several years. Generally, the larger the payout, the longer it will take to reach a mediated outcome. There are ways to escalate the process, which our lawyers will explain during your free case review.