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At-Fault Driver Cover
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Alert....Except for GIO, NRMA and QBE, At Fault Driver Cover Benefits Are Not Currently Payable For Accidents Occurring From 1 April 2010.
In our News article of 1 April and in our analysis of at fault driver cover on this page, we have explained that at fault driver cover benefits are not payable for accidents occurring from 1 April 2010, given the current policy terms on which insurers offer at fault driver cover. Despite that fact, none of the insurers has revised the terms on which it offers at fault driver cover and the insurers continue to market at fault driver cover as an added feature with CTP greenslips.
Whilst it has not yet updated its policy terms, QBE has contacted us to advise that "we will honour the intent of existing policies, in that we will pay the benefits even if the at-fault driver makes a CTP claim under the ANF (s49) scheme..."
QBE has also advised us that it will alter its policies in the next few weeks.
A copy of the advice from QBE is available.
GIO and NRMA have stated publicly that they will honour claims. GIO and NRMA, like QBE, are to update their policy documents.
We will monitor the position and update the site as necessary.
All green slip insurers provide the statutory cover required under the Motor Accidents Compensation Act 1999 and the Motor Accidents (Lifetime Care and Support) Act 2006.
Prior to the 2009 amendments to the Motor Accidents Compensation Act 1999, the driver at fault in an accident was not covered by the CTP greenslip scheme unless the driver was catastrophically injured.
Because the driver at fault was in most cases not covered by the scheme, green slip insurers introduced a benefit in addition to the statutory cover. That additional benefit is generally referred to as at fault driver cover.
Through at fault driver cover, insurers provide specified lump sum benefits for prescribed injuries which the driver may sustain and in some cases the insurers provide a death benefit for the at fault driver.
Five of the seven greenslip insurers offer at fault driver cover. A full insurer by insurer comparison of at fault driver cover is on this site, including injuries, benefits and exclusions.
Whilst at fault driver cover is a worthwhile additional feature, it was introduced by the insurers primarily as a marketing tool. A green slip is a generic product. The only real differentiating features are price, ease of access for purchase and at fault driver cover. The introduction of at fault driver cover provided the opportunity for insurers to differentiate their green slip offering on a basis other than price.
In May 2009 the Motor Accidents Compensation Act 1999 was amended. The amendments gave rise to two key reforms to the operation of the CTP greenslip scheme in respect of at fault drivers. Those reforms have had an impact on at fault driver cover.
More detail on the amendments to the scheme is available on this site.
The first reform, effective for accidents occurring from 1 July 2009, provides that hospital treatment, transport by ambulance and other treatments for at fault drivers are funded by the scheme, as they are for other injured persons.
Under the second reform, the entitlement to early payment of $5,000.00 for treatment and lost earnings through lodgement of an Accident Notification Form (ANF) has been extended to include at fault drivers injured in accidents occuring on and after 1 April 2010.
The final impact of the reforms on at fault driver cover is not clear, at this stage. However, an issue has arisen from 1 April 2010. The insurer's policy documents for at fault driver cover currently state that no at fault driver cover benefits will be paid if the at fault driver is entitled to or receives compensation under the CTP greenslip scheme. As a result of the reforms, at fault drivers are now entitled to compensation under the CTP greenslip scheme. Therefore, no benefits are payable under the terms of the current at fault driver cover policies (despite the fact that the insurers are still advertising those benefits). The insurers will need to change their position so as to pay at fault driver cover benefits in addition to benefits which may be payable under the CTP greenslip scheme.
Each insurer provides a policy document setting out the benefits, injuries, exclusions, terms and conditions for their at fault driver cover.
The schedule of benefits, injuries and exclusions vary from insurer to insurer.
Before purchasing a greenslip you should refer to the insurers’ policy document to understand the full terms applying to the insurers at fault driver cover.
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