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Third Party Insurance Scheme

Compensation for people killed or injured in a road accident

Under the Third Party Insurance scheme, compensation is available for people who are killed or injured in a road accident. The scheme was developed so compensation is available, regardless of the financial means of the vehicle owner or driver.

The Third Party Insurance scheme is regulated by Motor Accident Injuries Act 2017 (the 2017 Act). Before 1 December 2017, it was Motor Accidents Compensation Act 1999 (the 1999 Act).

Under the Acts the insurer insures the driver against liability for injury or death caused by the fault of that driver:

  • Benefits available under the 2017 Act are different from the 1999 Act.
  • Anyone injured in a motor accident before 1 December 2017 claimed under the 1999 Act.
  • Both schemes operate at the same time until all claims under the 1999 Act are finalised.

2017 Act

There are three types of benefits and two types of damages.


Benefits are payable to all injured parties, regardless of fault. The period for which benefits are payable is determined by fault and the level of injury.

Three types of benefits are payable:

  • Payment for loss of income
  • Payment for medical treatment and care
  • Payment of funeral expenses.


Eligibility to claim for damages is determined by the level of injury, regardless of fault. Damages are not payable for minor injuries.

There are two types of damages claims:

  • Damage for economic loss
  • Damage for non-economic loss.

For more detail on benefits available, see our Claims Guide.

For further benefits available to claimants after 5 years, see CTP Care.

The scheme remains fault-based to the extent that it excludes at-fault drivers from some benefits available to other injured persons, such as damages.

1999 Act

Compensation could be for economic or non-economic loss.

  • Economic loss includes hospital, medical and rehabilitation costs and loss of earnings.
  • Non-economic loss is for pain and suffering and loss of quality of life.

The amount of compensation was limited and dependent on many factors.

The Act was developed on the principle of fault. For someone to be entitled to compensation, there needed to be fault on the part of the driver. The Act also excluded the at-fault driver from entitlement to compensation.

While the Act remained fault-based, amendments to the Act changed the fault-based nature of the scheme and extended some of the benefits available under the scheme to include at-fault drivers.

There were four principle amendments to the old scheme:

1. Special childrens benefit

For accidents occurring after 1 October 2006, a special childrens benefit applied. Children under 16 years could apply for the special childrens benefit, regardless of fault and even if they caused the accident.

2. Blameless accidents

People killed or injured in a blameless accident occurring after 1 October 2007 were entitled to compensation, despite there being no driver at fault. A blameless accident is one where the driver of a vehicle which causes injury is not at fault. For example, the driver suffered a sudden illness, mechanical failure or an unavoidable collision with an animal. The Act excluded the driver from making a claim in a blameless accident.

3. Bulk billing arrangements

For accidents occurring after 1 July 2009, the costs of hospital treatment, transport by ambulance and other treatments for at-fault drivers are funded by the scheme, as they are for other injured persons. The scheme funded those costs, regardless of fault.

4. Accident notification provisions

For accidents occurring after 1 April 2010, the entitlement to early payment of $5,000 for treatment and lost earnings by lodging an Accident Notification Form (ANF) was extended to include at-fault drivers. The compensation available by lodging an ANF was increased from $500 in October 2008.

Entitlements for at-fault drivers

Despite amendments to the scheme, at-fault drivers were not entitled to the same benefits as other people injured in a motor vehicle accident.

There were benefits available under the scheme that were not included in the bulk billing arrangements and not included in the accident notification provisions. They were not extended to at-fault drivers. For example, at-fault drivers were not entitled to claim for:

  • Medical, pharmaceutical and rehabilitation expenses incurred outside a public hospital and which exceeded the $5,000 ANF limit
  • Attendant care services or respite care services
  • Home modification
  • Compensation for pain and suffering and loss of quality of life
  • Past loss of earnings exceeding the $5,000 ANF limit
  • Future loss of earnings.

Amendments to the scheme, particularly the bulk billing arrangements and the accident notification provisions significantly changed the nature and operation of the scheme.

Even if the driver was at fault, these benefits were still payable:

  • Benefits payable to children under 16 years of age
  • Benefits payable to people injured in a blameless accident
  • Cost of hospital treatment, transport by ambulance and other treatments
  • Payment of $5,000 through an ANF.

Find more information on who and what is covered now under the 2017 CTP Scheme.

How it Works - more info

Lifetime Care and Support Scheme >

The Lifetime Care and Support scheme in NSW explained. read more

Injury claims >

What to do if you want to make a claim from your CTP insurer. read more

CTP Care >

Further benefits for NSW CTP claimants after 5 years. read more

State Insurance Regulatory Authority >

Government authority responsible for the NSW CTP scheme. read more

Scheme changes 2009 and 2010 >

History of major changes to the NSW CTP scheme. read more

Motor Accident Authority >

Previous authority responsible for the NSW CTP scheme. read more

CTP insurance >

Why you need CTP insurance and how it works. read more

What is a greenslip? >

Find out exactly what is meant by a green slip in NSW. read more

Who and what is covered? >

Who and what is covered by your CTP green slip. read more

At-fault Driver Cover >

What is At-fault Driver Cover and which insurer offers it. read more

Setting prices >

How green slip prices are set and how you could reduce them. read more

Discounts >

Discounts and ways to reduce costs on other insurance products. read more

Demerit points >

How demerit points affect your driving licence and your greenslip read more

Youngest driver >

Youngest driver explained and how to reduce premiums. read more

Pensioner concessions >

What kinds of concessions you can claim as a pensioner. read more

Mythbusters >

Quickly separate the facts from fiction about CTP green slips. read more

Interesting statistics >

Statistics about motor vehicle accidents in the past year. read more

An explanation of the Fund Levy >

Cost of the Fund Levy and what it pays for. read more

Complaints >

How to make a complaint about your CTP insurer or SIRA. read more

Geographical zones >

Greenslip prices set using geographical zones by postcode. read more