CTP insurance is designed to cover the cost of compensation claims made against a driver if they kill or injure someone in a car accident. Here’s how CTP insurance works in Tasmania.
How does CTP work in Tasmania?
Tasmania’s compulsory third party insurance (CTP) is a no fault scheme provided by the Motor Accidents Insurance Board (MAIB). The MAIB exists to administer the funding and payment of Tasmania’s CTP scheme, and has been doing so since it was established in 1974.
What does Tasmania’s CTP scheme cover?
Tasmania’s CTP insurance provides extensive coverage for all Tasmanians injured in a motor vehicle accident, as long as the fault of another party can be established.
According to the MAIB, the claimable benefits covered by Tasmania’s CTP insurance include:
- Reasonable medical costs and other health professional costs
- Ambulance transport
- Hospital treatment costs
- Attendant care costs
- Reasonable costs for travelling to receive medical treatment
- Disability allowance (for those previously in paid employment who are unable to work)
- Housekeeping allowance (for those who are unable to perform their normal household tasks)
- Funeral expenses
- Death benefits
- Long-term care for the seriously injured
- Counselling fees for relatives of people fatally or seriously injured
As you can see, CTP cover does not cover damage to other people’s property or vehicles in a car accident; you need a comprehensive car insurance policy for that. If you’re looking for car insurance in addition to CTP, you can find the best policy by comparing your options on the Canstar website:
How is Tasmania’s CTP scheme funded?
Tasmania’s CTP scheme is funded in the same way that other states fund their CTP schemes; the owner of a registered vehicle must pay a MAIB CTP premium as part of their annual registration renewal fee.
The collected premiums paid by Tasmanians then go towards the state’s CTP premium pool. Any costs involved in compensating or covering a Tasmanian injured in a motor vehicle accident are drawn by MAIB from this premium pool.
Tasmania road statistics
Wondering why CTP is compulsory? Read the following road statistics from Tasmania.
According to the Tasmanian Department of State Growth, 2016 saw 37 fatalities on Tasmanian roads. While 17 of the 37 were drivers, 6 were passengers, 10 were motorcyclists, and 4 were pedestrians.
MAIB’s most recent annual report shows the 2015-16 period saw:
- 2,732 new CTP claims received
- 160 common law claims settled
- $43 million paid in no fault statutory benefits
- A 4% decrease in new claims compared to the previous year, despite a 2.6% increase in the number of insured vehicles
- A record-low claim frequency rate of 5.4 per 1,000 registered vehicles
And according to the most recent ABS Motor Vehicle Census:
- As at 31 January 2016, there are 316,904 registered passenger vehicles in TAS– making up just over 69% of all registered passenger vehicles in Tasmania, and just under 2.3% of all registered passenger vehicles in Australia (ABS).
- Motorcycles make up just over 4.1% of all registered vehicles in Tasmania, with 19,093 in the state (ABS).
The Insurance Commission of Western Australia (ICWA) says that as of 1 April 2015, the average CTP annual premium for a Tasmanian resident was $338/year. This is the third cheapest in the country, behind Queensland’s average of $323/year and WA on $291/year.
Tasmania’s CTP insurance providers
There is only one insurer currently licensed to offer CTP insurance in Tasmania at the time of writing – the Motor Accidents Insurance Board (MAIB).
The MAIB was established in 1974 under the Motor Accidents (Liabilities and Compensation) Act 1973 and is a Tasmanian Government Enterprise. If you’re involved or injured in a motor vehicle accident, MAIB provides medical and income benefits on a no fault basis. The MAIB claims to charge the lowest premium in Australia for CTP.
Car insurance for Tasmanian drivers
CTP doesn’t cover you for damage to other vehicles or other people’s property, or damage to your vehicle caused by an accident or other causes such as fire, flood, or storm, so make sure you consider the pros and cons of getting comprehensive car insurance.