The outcome of a vehicle accident is always challenging and time-consuming, but when you have the right coverage, you will have nothing to worry about. Compulsory Third party insurance can help you handle problems relating to a car accident, including covering the liability for injury caused to passengers or road users during an accident. Continue reading this article to get the necessary information concerning CTP insurance and what it covers.
What is CTP insurance?
Compulsory Third party insurance (CTP), also known as CTP green slip, shields drivers or car owners from the financial effect of causing injury or death to third parties due to a car accident. CTP insurance is different from other types of insurance as it does not cover your motor vehicle or damaged properties during the event of the accident. CTP insurance is compulsory and is also required for an individual to be able to register their car.
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The benefit of CTP insurance
CTP insurance is essential as it protects car owners and drivers from financial liability for injury or death caused to passengers, pedestrians, or other road users during an accident they are responsible for. CTP insurance makes it easier for the driver to handle the cost of compensating the people involved in the accident without going bankrupt. It also helps the court to avoid being engulfed by claims for road accidents.
What does CTP insurance cover?
Some of the things CTP insurance covers include the following;
- Medical treatment and expenses.
- CTP insurance covers your liability for injuries caused to third parties in a car accident.
- It covers the liability of other people who drive your vehicle with your permission for injuries caused to third parties in a car accident.
- Payment for lost income.
What doesn’t CTP insurance cover?
The following are not covered by CTP insurance.
- Damage to your vehicle.
- Damage to other people’s vehicles or properties
- An injured driver who was utterly at fault in the accident
- CTP insurance does not cover your car from vandalism, fire, or theft
What are the dangers of not having CTP insurance?
CTP insurance is mandatory. It is against the law not to have CTP insurance as a car owner, and you could attract heavy penalties if you are found driving without it. Secondly, suppose you get involved in a vehicle accident; in that case, you will be responsible for all the damages, death, or injury caused to other parties involved in the event of the accident, including the cost of compensation.
How CTP insurance works
When getting CTP insurance, it can be for a brand-new car or a used car. The insurance is added as part of the driveaway costs for a newly purchased vehicle. The insurance premium cost will be minimal during registration for your automobile’s premium class. Still, CTP is exempted if you bought the car from interstate, and it will now be up to you to obtain the insurance at the time of your car registration in your state. Also, a CTP Insurer is automatically assigned to offer your CTP Policy of Insurance. For a second-hand or used vehicle, the CTP insurance and the outstanding registration will be transferred to you when you buy or take possession of a used vehicle. Also, during vehicle registration renewal, you can choose your CTP insurer.
Bottom line
CTP insurance is compulsory irrespective of which state you live in and essential as it gives car owners and drivers the primary form of coverage. CTP is required for you to be able to register your car and drive legally, whether a brand-new or second-hand vehicle.