Compulsory Third Party Insurance As an Australian Law

  • Post Author:
  • Post Category:Blog

Australia has gained popularity all over the world for its car insurance companies and their valuable services for their customers. There are different reasons behind this popularity. The first important reason is that, there are a large number of car insurance companies in Australia who try to defeat their competitors by providing more reasonable and effective services. The second key reason is that, the government of Australia regulates the process of car insurance. Australian government gives opportunities to its employers to register complaints against these companies if they find them ineffective.

Australian government has designed effective laws and policies for its employers to get car insurance. CTP or Compulsory Third Party insurances are essential for every driver who is driving on the roads of Australia. This kind of insurance does not compensate for any injury to the driver if the driver is liable for the accident. Moreover, this insurance does not compensate the damages to one's own property. Compulsory Third Party insurances compensate in the cases where one has caused damaged to anyone else vehicle. Moreover, its compensation rules also include the conditions of the theft of the car. In this way, these insurances share the burdens of an individual who was driving someone else's car and met an accident.

These basic insurance policies are profitable for those who are living in populated areas of Australia. If you are living in New South Wales, then you are availing these services at your best. This is a crowded area of ​​Australia. In these populated areas, there are many chances of meeting an accident and theft of the vehicle. So, insurance policies can be beneficial for people living in these areas. One of the popular examples of these compulsory third party insurances is Green Slip car insurance. Australians have to produce this Green Slip insurance at the time of vehicle's registration. If any Australian inhabitant wants to get the benefit from his insurance, he must have to register his vehicle. Otherwise, this insurance will not help him in the time of need. Green Slip provides compensation for personal injury to drivers, passengers and pedestrians. It does not provide its services to the drive who is 16 above and not injured seriously. Moreover, damages to any other vehicle, damage to property and theft does not fall in the category of green slip compulsory third party insurance.

Compulsory Third Party insurance is legalized and a "must" for everyone in Australia. As, we have seen that these insurances do not cover the damages to vehicle's owner and does not compensate any damage to one's own car, so it is necessary to get comprehensive insurance for your car. These comprehensive insurances are even more important when one buys a brand new expensive car for him. In this way, these comprehensive insurances can prevent the owner from a great setback in case of any catastrous damage to new car. So, these are all the policies developed by Australian government to protect its drivers.

Source by Bill Mather