How At-Fault Driver Cover works
All insurers provide the statutory cover for green slips required under the Acts.* Under the CTP scheme introduced by the 2017 Act, drivers at fault can receive up to 12 months of fixed benefits for all types of injury.
However, before 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. Green slip insurers introduced a benefit in addition to the statutory cover for the driver at fault. That additional benefit was generally called At-Fault Driver Cover.
Through At-Fault Driver Cover, insurers provided specified lump sum benefits for prescribed injuries to the driver. In some cases, the insurers provided a death benefit for the at-fault driver.
Only one insurer offers cover
Only one insurer, NRMA Insurance, continues to offer At-Fault Driver Cover.
- QBE ceased offering At-Fault Driver Cover on greenslips on or after 1 April 2012.
- Zurich ceased offering CTP greenslips from 1 March 2016.
- GIO ceased offering At-Fault Driver Cover on greenslips on or after 1 December 2017.
- CIC Allianz ceased offering CTP green slips from 15 January 2019.
- Allianz ceased offering At-Fault Driver Cover from 1 September 2021.
While At-Fault Driver Cover is a worthwhile additional feature, insurers introduced it primarily as a marketing tool:
- A green slip is a generic product.
- The only differentiating features are price, ways to purchase and At-Fault Driver Cover.
- At-Fault Driver Cover was an opportunity for insurers to differentiate their green slips on a basis other than price or ways to purchase.
A full analysis of At-Fault Driver Cover is on this site, including injuries, schedule of benefits and exclusions.
Before purchasing a greenslip, refer to the insurer’s policy document to understand the full terms applying to any At-Fault Driver Cover.
Amendments to the Motor Accidents Compensation Act 1999
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 had an impact on At-Fault Driver Cover.
- The first reform, effective for accidents occurring from 1 July 2009, provided that hospital treatment, transport by ambulance and other treatments for at-fault drivers were funded by the scheme, as they were for other injured people.
- Under the second reform, entitlement to early payment of $5,000 for treatment and lost earnings through lodgment of an Accident Notification Form (ANF), was extended to include at-fault drivers injured in accidents occurring on and after 1 April 2010.
Read more detail on 2009-10 amendments to the CTP scheme.
greenslips.com.au identifies major issue
greenslips.com.au identified a major issue that arose from 1 April 2010. The terms of the insurer policy documents for At-Fault Driver Cover at that time provided that no At-Fault Driver Cover benefits would be paid if the at-fault driver was entitled to or received compensation under the Motor Accidents Compensation Act 1999.
As a result of amendments to the Act, at-fault drivers became entitled to compensation from 1 April 2010. Therefore, no benefits were payable under the terms of the At-Fault Driver Cover policies then in use (despite the fact insurers were still advertising those benefits).
The insurers were required to change their policy terms to pay At-Fault Driver Cover benefits in addition to benefits which became available under that CTP greenslip scheme from 1 April 2010.
* Since 1 December 2017 insurers provide statutory cover under Motor Accident Injuries Act 2017 (2017 Act) and Motor Accidents (Lifetime Care and Support) Act 2006. Before 1 December 2017 Motor Accidents Compensation Act 1999 and Motor Accidents (Lifetime Care and Support) Act 2006 applied.