About Greenslips

Third Party Insurance Scheme

Under the third party insurance scheme, compensation is available where people are killed or injured as a result of an accident caused by the fault of the driver of a motor vehicle.

Compensation is available, regardless of the financial means of the owner or driver of a motor vehicle, because under the act the insurer is insuring the driver against liability for injury or death caused by the fault of that driver.

Compensation can be for economic or non-economic loss. Economic loss includes ability to earn income, hospital, medical and rehabilitation costs. Non-economic loss is for pain and suffering and loss of quality of life. The amount of compensation is limited and is dependent on many factors.

The act was developed on the principle of being fault based. That is, for someone to be entitled to compensation there needs to be fault on the part of the driver of a motor vehicle. The act also excludes the at fault party from entitlement to compensation. However, the Act has been expanded to extend the right to compensation to children under 16 years of age, regardless of fault and even if they caused the accident (in which case a special children’s entitlement applies) and to people killed or injured in a blameless accident.

A blameless accident is one where the driver of a motor vehicle which causes injury is not at fault. An example of a blameless accident is one where the driver suffered a sudden illness, where there was mechanical failure or where there was an unavoidable collision with an animal. The Act excludes the driver from making a claim in a blameless accident.

At fault drivers and drivers involved in a blameless accident are not covered under the third party insurance scheme (unless they are under 16 years of age).