INSURING YOUR CAR
A guide to Compulsory Third Party (CTP) and Motor Accident Injuries (MAI) Insurance
14 February 2025
If you’re a car owner, you’ve probably heard of CTP or MAI Insurance. However, you may be unclear on how it works and who it covers in the event of a motor vehicle accident.
Here are some things you may want to know.
What is CTP and MAI Insurance?
CTP or MAI Insurance is mandatory for vehicles registered in Australia. It can help cover costs related to injuries sustained by people involved in a motor vehicle accident. This may include the driver of your vehicle, other drivers, passengers, pedestrians, cyclists, and motorcyclists.
In New South Wales, CTP Insurance is also known as a Green Slip. If you’re a resident of the ACT, the insurance is known as Motor Accident Injuries (MAI) Insurance.
How does CTP and MAI Insurance work?
CTP and MAI Insurance schemes are legislated on a state-by-state basis. They are provided by either government bodies or private insurers, like GIO, depending on the state or territory in which your vehicle is registered in.
In most states and territories, CTP or MAI insurance is attached to the vehicle’s registration. However, if you live in NSW, you must get a CTP Green Slip before registering your vehicle.
What does CTP and MAI cover?
What’s covered?
- Your liability for injuries caused to third parties in a motor vehicle accident.
- The liability of other people who drive your vehicle for injuries caused to third parties in a motor vehicle accident
- Reasonable and necessary treatment and care expenses as well as lost income benefits.
What’s not covered?
- Damage to your vehicle.
- Damage to other people’s vehicles or property.
Does CTP and MAI cover any driver?
In NSW and the ACT, anyone injured in a motor vehicle accident, regardless of fault can make a CTP or MAI Insurance claim for medical expenses and lost income, unless you’re charged with or convicted of a serious driving offence in connection with the accident. Other exclusions may apply.
