Many people ask if their insurer’s green slip will cover them if they have a road accident and it’s their fault. In fact, all CTP insurers in NSW must by law provide exactly the same cover. But if you are at fault and make a claim, the NSW scheme does not cover you to the same extent as someone who is not at fault.
What do we mean by at-fault?
The law says At fault means you were 100% at fault or your contributory negligence was more than 61%.
Obviously, this is a complex decision for your insurer to make. When claimants disagree with a decision and ask their insurer to review it, one of the most common is whether or not the injured person was mostly at fault.
What happens if I’m at fault and make a claim?
Under the NSW CTP scheme, the driver at fault in an accident is not covered to the same extent as someone who is not at fault.
The NSW scheme offers three types of benefits and two types of damages.
There are three types of benefits payment for:
- Loss of income
- Medical treatment and care
- Funeral expenses.
These benefits are affected if you are at fault. Benefits for loss of income and for treatment and care are limited to 6 months, no matter how serious your injury. Treatment and care costs include:
There are two types of damages claims:
- Damages for economic loss (loss of past income and future earning capacity)
- Damages for non-economic loss (pain and suffering).
If you are at fault, your entitlement to claim for damages is not affected. However, your entitlement to claim is limited by the extent of your injuries:
- If you have more than minor injuries*, you can claim damages for economic loss
- If you have more than 10% permanent impairment, you can claim damages for non-economic loss.
*A minor injury is a soft tissue injury or minor psychological or psychiatric injury.
At-Fault Driver Cover
Historically, some insurers have offered benefits for the injured at-fault driver on top of benefits payable under the CTP scheme. These benefits are usually fixed amounts for specified injuries and they are generally called At-Fault Driver Cover.
Only Allianz and NRMA Insurance now offer At-Fault Driver Cover. NRMA brands it CTP Driver Protection and Allianz brands it At-Fault Driver Protection. These insurers vary in which items they provide fixed benefits for and the amounts they will pay for them. For example, some items they provide fixed benefits for are:
- Total loss of speech
- Total loss of hearing
- Loss of use of one limb
- Death within 6 months of accident.
Read more about the actual amounts and the limits payable by both insurers.
Last word on greenslips
Each CTP greenslip in NSW provides exactly the same cover, regardless of insurer. However, if you are at fault in a road accident, you are not covered to the same extent as someone who is not at fault. Your benefits are limited to 6 months and your entitlements to damages depend on the extent of your injuries.
Have you ever wondered why you need a green slip? Do you know what your green slip covers and doesn’t cover? Do all insurers offer the same green slip? These are all good questions you ask that greenslips.com.au will answer.
This is the third article in our 8-part series, How greenslip insurance works. Read article 2, What does a greenslip cover?