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It offers some financial liability cover for drivers who are responsible for collisions and helps road accident victims and their families when they need it most.
For more information about how it benefits you, here’s how CTP insurance works in South Australia.
Until recently, CTP insurance in South Australia was managed by the Motor Accident Commission (MAC) and provided exclusively by Allianz SA CTP.
However, due to changes in legislation, the CTP Insurance Regulator has been managing the scheme since 1 July 2016, and cover is now provided through four private insurance companies. The new CTP providers are AAMI, Allianz Australia Insurance Limited, QBE Insurance (Australia) Limited, and SGIC.
MAC will continue its work in road safety research and safer road user behaviour, through funding from the SA government and CTP premiums.
When the new legislation took effect, your vehicle would have been automatically allocated to one of the four approved insurers. However, you may not have noticed any difference, as your premium is still included as part of the vehicle registration fee you pay each year to the Department of Planning, Transport and Infrastructure.
The insurers are required to provide the same CTP insurance product at the same price, so there’s no advantage in being with any particular company. Likewise, any entitlement to compensation in the case of injury will be the same, regardless of the insurer.
The CTP premium you pay is determined by:
Premium prices are set to remain fixed for the first three years after privatisation, with an average increase of around 3% each year while the new model settles in.
CTP insurance provides compensation for death or injury that occurs as the result of a motor vehicle accident where the driver of an SA-registered vehicle is at fault.
On average, 20 people are injured every day on South Australian roads. Rehabilitation and medical costs for these people can run into the hundreds of thousands of dollars, which is why it’s so vital that drivers have CTP cover.
Further, CTP insurance ensures that all road accident victims who are seeking compensation are treated equally and that their level of compensation does not depend on the means of the person who caused the accident.
It’s not blanket coverage, though.
South Australia’s CTP insurance scheme does not:
It’s also important to note that you may have to repay an insurer for compensation paid to an injured party if it is found that you were:
No. CTP insurance only covers you for personal injury claims. You need additional car insurance to cover fire, theft or vandalism to your vehicle, damage to your own vehicle, and any damage you cause to other people’s property.
Without the appropriate level of Comprehensive or Third Party cover in addition to your CTP insurance, you could be stuck with a repair bill to the tune of tens of thousands of dollars or more, even if the accident was not your fault.