Victoria CTP Insurance

19 March 2018
Information about Victoria’s Compulsory Third Party (CTP) Insurance.

How does CTP work in Victoria?

Victoria’s compulsory third party (CTP) scheme has operated on a no-fault basis since 1971.

Who offers CTP in Victoria?

The Transport Accident Commission (TAC) administers CTP in Victoria. The TAC was established in 1986 and since then has been the sole provider and manager of CTP insurance in the state of Victoria.

Prior to the formation of the TAC, CTP insurance was provided by SIO and RACV.

Victorian road statistics

Wondering why CTP is compulsory? Read the following road statistics from Victoria:

  • As at 31 January 2016, there were 3,666,505 registered passenger vehicles in VIC– making up around 78.32% of all registered vehicles in the state (ABS). Motorcycles make up 3.96% of all registered vehicles in VIC, with 185,248 (ABS).
  • According to the TAC, the average annual standard TAC charge (CTP premium, excluding GST/duties) for passenger vehicles was, depending on the zone:
    • $510.40/year for a high risk zone
    • $457.60/year for a medium risk zone
    • $396/year for a low risk zone
  • In the year 2015-16, there were 20,006 no-fault CTP claim lodgements in Victoria (TAC).
  • In 2016, there were 291 fatalities on VIC roads (TAC). Of these, 151 were drivers, 36 were passengers, 40 were pedestrians, 56 were motorcyclists and 8 were bicyclists (TAC).
  • According to a 2014 Canstar Blue survey, 68% of people in VIC say they frequently get frustrated by other road users – the highest rate out of Australia’s five biggest states. The survey also found that 11% of Victorians say they have collided with a cyclist and 10% have hit a parked car and left the scene without leaving their details.

Victoria’s CTP insurance providers

There is only one insurer currently licensed to offer CTP insurance in Victoria at the time of writing – the Transport Accident Commission (TAC).

About the TAC

The Transport Accident Commission was established in 1986 and since then has been the sole provider and manager of CTP insurance in the state of Victoria. It is a government-owned organisation led by a Board of Management whose Directors are drawn from the greater Victorian community.

The TAC is funded by the TAC charge, another name for the state’s CTP insurance premium, which is paid as part of registering any vehicle in Victoria.

The TAC’s vision is “zero deaths and serious injuries on our roads”, as they believe “people’s life and health should never be the price we pay for using our roads”.

The TAC has a number of grant programs, with their Community Road Safety Grants program giving grants of up to $25,000 to community-based projects conducted by not-for-profits that tackle local road safety issues. They also have Small Grants, Local Government Grants and TAC Youth Grants programs.

The TAC also has a social investment program, which is directed through four key themes (for the 2016-2020 period):

  • Towards Zero
  • Lives Back On Track
  • Geelong Livability and Our People
  • Industry Leadership

Car insurance for Victorian 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.


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