CTP Benefit: Third Party Insurance Scheme

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Motor Accidents Compensation Act 1999 used to regulate all the Third party insurance schemes before 1st December 2017. Now, this act is regulated by the Motor Accident Injuries Act 2017 also known as the 2017 Act.

Under the CTP Greenslip Third party insurance scheme, people who get injured or killed during a vehicle accident get cover benefits. Only the third party involved during the road accident gets compensation.

There are a lot of factors which decide the amount of compensation. This compensation can be for hospital cost, medical and rehabilitation costs etc. Third party insurance compensation can also be for losses like loss of quality of life.

One important thing to notice is benefits and compensation are different under the 1999 Act and 2017 Act. Someone injured in a road accident before Ist December 2017 will get benefits of Motor Accidents Compensation Act 1999.

Related: Lifetime Care and Support scheme.

Motor Accident Injuries Act 2017

This act describes a new scheme of CTP greenslip Insurance. This act defines new benefits and damages.

Importance of Third Party Insurance Scheme
The concept of third-party insurance is important because it compensates people injured or killed in a motor vehicle accident. At the same time, it does not put any extra financial burden on the owner of At fault vehicle.

Who is the Third Party?

Third Party in green slip Insurance is the person who will get all the cover benefits based on the insurance contract between two other parties. Third Party was never the part of CTP insurance but gets all the benefits and compensations mentioned in the policy. Thus, in CTP one party pays another party to cover the third party.
What does CTP Insurance cover?
CTP Insurance policy only covers people injured or killed in a motor vehicle accident. It does not cover any damage to any property.

Third party Car Insurance vs CTP Green Slips

Third party car insurance covers all the damages to the vehicle or the property of the third party. CTP Green slips only cover people injured or killed in a vehicle accident.

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