What is a Green Slip and why do I need one in NSW?

What is a Green Slip or CTP?

In order to register a vehicle in NSW you need to have Compulsory Third Party Personal Injury Insurance otherwise known as CTP insurance of CTP Green Slip.  CTP provides the essential basic cover when you, or the driver of your vehicle, is at fault in accident.  The CTP Green Slip puts cover in place that would easily cost millions of dollars if it was not.

Do I really need CTP?

Yes.  Having a green slip or CTP is compulsory by law.

Does CTP only cover me in NSW?

No.  CTP insurance now provides cover throughout Australia

Who or what does CTP cover?

This is often a point of confusion among young and even not so young drivers.  Essentially CTP provides compensation for anyone injured or killed in an accident.  The driver at fault does have some cover but essentially the compensation provides for passengers, drivers of other vehicles involved in the accident, pedestrians, cyclists and motorcyclists.   Trailers are also included under green slip cover.

The Motor Accidents Compensation Act 1999 and the Motor Accidents (Lifetime care and Support) Act 2006 detail the compensation payable and the limits.

What does the Green Slip NOT cover?

Again often misunderstood what the Green Slip does not cover is also important to understand.  What is not covered is fairly simple and because of what is not covered many people consider taking out more comprehensive cover.

When taking out CTP it will not cover the theft of your vehicle, damage to the vehicle or property. Likewise CTP will not cover damage to other peoples’ vehicles or property. You also need to assess the extent to which the driver at fault will be covered, unless the driver is very seriously injured at which point the Lifetime Care and Support scheme applies, the CTP does not cover the driver to the full extent of the scheme.

If you are not sure how much cover your policy provides ask your broker.

Where do I get my CTP or Green Slip?

Getting a green slip is relatively straightforward and they are provided by insurance companies.  There are 8 insurance companies, all regulated by the Motor Accidents Authority of NSW, that can provide CTP cover. These companies are:








Is CTP cover cheaper from some insurers?

While some insurers do offer CTP cover cheaper than others it should be noted that because pricing of CTP cover is regulated the Motor Accidents Authority of NSW the prices should not vary a great deal.  It is essential to ensure your CTP price is based exactly on the vehicle being insured and the details provided; the only variance between policies should be related to vehicle and/or other information. It is, however worth comparing the prices from the 7 insurers.

Getting your CTP or Green Slip insurance is compulsory by law and thankfully the process for getting the insurance is fairly straight forward.  The costs are not overly high but as with all insurances the value of what is being insured verses the cost of replacing or paying for the damages – in the case of CTP it is the lives of others – is worth every cent.

Happy Motoring.

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