CTP
Compulsory Third Party motor insurance, the mandatory bodily-injury cover attached to a vehicle’s registration in every Australian state and territory.
What it means in practice.
Each state runs its own CTP scheme: NSW under the Motor Accidents Injuries Act 2017, Victoria under the TAC, Queensland under the MAIC, and so on. Each scheme has its own thresholds and benefit structures.
CTP, Compulsory Third Party insurance, pays for injuries caused by motor vehicles in Australia. It is bought with a vehicle’s registration, and each state runs its own scheme with its own rules, so the same crash injury can be treated very differently in Sydney, Melbourne and Brisbane.
In New South Wales, claims fall under the Motor Accident Injuries Act 2017. Minor soft tissue and psychological injuries are “threshold injuries” with limited benefits, and damages for non-economic loss need permanent impairment greater than 10%, assessed by medical assessors of the Personal Injury Commission. Those assessments are often contested, and the Supreme Court regularly reviews them.
Queensland’s scheme is fault based: a person injured by another driver claims against the CTP insurer of the vehicle that caused the crash, and compensation is reduced if they were partly at fault. Victoria’s Transport Accident Commission pays compensation under the Transport Accident Act 1986, but a lawsuit for damages generally needs a “serious injury”, which is taken to exist at 30% impairment or more.
How it works, step by step.
| State | How CTP works for injured people | Source |
|---|---|---|
| New South Wales | Non-economic loss only above 10% permanent impairment; soft tissue injuries are generally threshold injuries, but one with radiculopathy caused by the crash is not. | Allianz v Susak [2025] NSWCA 91 |
| New South Wales (older claims) | Accidents before the 2017 Act fall under the Motor Accidents Compensation Act 1999, where s 131 set the same greater than 10% gate. | NRMA v Kirkpinar [2025] NSWSC 162 |
| Queensland | Claim against the at fault vehicle’s CTP insurer; damages reduced for your share of fault; general damages only for injuries serious enough, valued on the 0 to 100 Injury Scale Value. | MAIC, What can be claimed |
| Queensland claim form | The Notice of Accident Claim Form, online or on paper, must be signed in front of an eligible witness. | MAIC, Submitting a claim |
| Victoria | The TAC pays compensation under the Act; suing for damages needs a serious injury, which is deemed at 30% impairment or more, or a TAC certificate or court leave below that. | Transport Accident Act 1986 (Vic) s 93 |
A worked example.
A NSW impairment assessment in the Supreme Court
- Accident
- 11 March 2021, rear ended by a van
- Injury claimed
- PTSD and persistent depressive disorder
- Assessed impairment
- 15%, greater than 10%
- Insurer’s step
- Asked for a review panel; refused by a delegate
- Result
- Refusal quashed and sent back
The 10% line decides whether a NSW motor accident claimant can recover anything for pain and suffering, so insurers and claimants both fight over the percentage.
Insurance Australia Ltd t/as NRMA Insurance v Momand [2024] NSWSC 1529