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 first article in our 8-part series, How greenslip insurance works.
What is a greenslip?
In NSW, greenslip is the term we use for Compulsory Third Party (CTP) insurance. They can also be called CTP greenslips, green slips, greenslip insurance, CTP or CTP insurance.
The first CTP insurance scheme started in 1942 but it was not until 1988 that insurance policies were first called green slips.
Your greenslip is an insurance policy that pays compensation to people who are killed or injured in a road accident involving your vehicle.
When you purchase a greenslip you are taking part in two different schemes in NSW:
- Third-party Insurance scheme, which pays compensation when people are killed or injured in a road accident
- Lifetime Care and Support scheme, which pays separate benefits for people who are catastrophically injured in a road accident.
Green slips from each insurer are identical because they have to provide the same legal insurance cover. If you are injured in an accident:
- You are entitled to benefits and, if you have serious injuries, claim for damages
- Benefits include payments for loss of income, medical costs and rehabilitation costs
- These benefits are payable whether or not it was your fault, but the period they are payable for depends on fault and the level of injury.
Two of the six insurers offer At-Fault Driver Cover on top of the legal cover provided by their green slips. We will look at At-Fault Driver Cover in another article.
Why do I need a green slip?
You must have a green slip before you can register a vehicle in NSW. This is because it protects you from expensive damages claims in case your vehicle is involved in a road accident.
Without a green slip:
- The injured person would have to recover all their costs from you, the at-fault driver, which could be financially devastating
- The injured person would have no compensation at all unless you could pay it.
It is illegal not to have current green slip insurance on your vehicle. If you don’t have a green slip, then your vehicle is unregistered.
A greenslip is a legal requirement for all vehicles registered in NSW, except trailers. This is because a trailer is covered under the greenslip of the vehicle that is towing it.
Last word on green slips
Your greenslip is an insurance policy that pays compensation for people who are killed or injured in a road accident involving your vehicle. It is there to protect you from expensive damages claims and the other heavy costs of a road accident. This is why green slips are compulsory for all vehicle owners in NSW.