Western Australia CTP Insurance

20 March 2018
Information about Western Australia’s compulsory third party insurance (CTP).

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 Western Australia.

How does CTP work in WA?

Western Australia’s compulsory third party (CTP) insurance scheme uses an at-fault scheme where injured drivers must prove the other driver was at fault (caused the accident) in order to make a successful CTP claim. So if you are at fault, you cannot make a claim, and if you are partly at fault you may get reduced compensation.

CTP insurance in WA is solely provided by the Insurance Commission of Western Australia (ICWA), which is also responsible for administering, underwriting, and managing the scheme.

ICWA estimates that 92 people are catastrophically injured in motor vehicle accidents in WA each year, and 44 of these are not compensated through the CTP scheme due to not being able to assert fault against another driver.

Due to this, in 2015 there was an attempt by the WA government to expand the state’s CTP scheme to a no fault scheme, meaning that people injured in a road accident would be able to make a claim and receive compensation regardless of fault. However, this attempt was not successful and as at July 2017, WA remains an ‘at-fault’ CTP state.

Western Australia road statistics

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

  • As at 31 January 2015, there are 1,566,574 registered passenger vehicles in WA– making up around 71% of all registered vehicles (ABS).
  • Motorcycles make up about 6% of all registered vehicles in WA, with 127,145 bikes on the road (ABS).
  • As at 1 April 2015, the average annual CTP premium for a private motor car (excluding GST and duties) in Western Australia was $291/year – the cheapest out of all the states (ICWA).
  • In 2016, there were 3,158 personal injury CTP claims in Western Australia (ICWA).
  • In 2016, there were 225 crash-related fatalities on WA roads, and another 5,592 crashes in WA were attended by an ambulance (ICWA).
  • According to a 2014 Canstar Blue survey, 96% West Australians believe they are a good driver – the highest rate out of Australia’s five biggest states. However, the survey also found that 43% of West Australians have experienced a ‘road rage’ incident.

Western Australia’s CTP insurance providers

There is only one insurer currently licensed to offer CTP insurance in Western Australia at the time of writing – the Insurance Commission of Western Australia (ICWA).

ICWA are responsible for administering, underwriting, and managing the scheme. They provide motor vehicle injury insurance for over 2.8 million vehicles in the state.

Car insurance for WA 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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