CTP Insurance in Western Australia
Motor vehicle registration in Western Australia is referred to as a motor vehicle licence.
CTP insurance or Third Party Insurance is included in the motor vehicle licence. CTP Insurance is itemised as a separate amount on the motor vehicle licence renewal notice.
In WA, unlike NSW, there is only one CTP insurer, the Insurance Commission of Western Australia (ICWA). The CTP division of the ICWA manages all claims resulting from motor vehicle crashes that involve WA licensed vehicles.
The ICWA covers owners and drivers of vehicles registered in WA for the cost of claims against them for death or injury caused by their negligence. The insurance applies in any part of Australia and is subject to warranties and conditions. This aspect of the scheme is fault based so that an injured party must prove liability and establish negligence on the part of the driver or owner of a vehicle. The insurance was extended from 1 July 2016 to cover anyone catastrophically injured in a motor vehicle crash in WA, regardless of fault. People with catastrophic injuries are covered for the treatment, care and support they need for the remainder of their lives.
Motor vehicle licence fees in WA are primarily based on vehicle weight plus administration fees. The rate per kilogram varies depending on vehicle type.
The CTP insurance component of the motor vehicle licence is based on the type of vehicle (vehicle classification) and the primary purpose for which it is being used. Premiums are determined based on the claims history for that vehicle class and use. Factors such as owner or driver age, driving record and claims history are not directly reflected in the licence fee. In NSW, factors such as those are factored into the separate CTP insurance cost.
For certain types of vehicle, two different rates apply to the licence fee, a private (personal) rate and a standard (business) rate.
The private rate is cheaper than the standard rate
To be eligible for the Private rate, the vehicle must be a car, bus or goods vehicle that is:
- licensed in the name of a natural person;
- with an unloaded mass that does not exceed 3,000 kg;
- not a heavy vehicle;
- to be used exclusively for social, domestic or pleasure purposes and not for the carriage of passengers or goods, for hire or reward, or in any business, trade or profession.
Other vehicles which do not fit the description of a family vehicle, including motorbikes, trailers, caravans and mobile caravans must pay the standard rate.
Vehicle owners registered for GST and entitled to claim an input tax credit must also pay the standard rate.
Vehicle licensing in WA is controlled by the Department of Transport.
Light vehicle licences can be renewed for 3, 6 or 12 months.
If a licence is more than three months overdue, the licence will be cancelled.
Vehicle safety inspections are not required for standard light vehicle licence renewals.
Most light motor vehicles must be fitted with an approved immobiliser for the grant of a motor vehicle licence or to transfer ownership in WA.
Transferring Registration to WA
Vehicles being transferred to WA from interstate will not require a roadworthiness examination if:
- it is a light vehicle;
- currently licensed in another state or territory;
- the vehicle is more than twelve months old and you have owned the vehicle continuously for the last 12 months or more;
- the vehicle is less than 12 months old or you are the only owner since new;
- an approved immobiliser is fitted;
- the vehicle is not modified or is modified with approval and certification;
- the vehicle does not require an annual inspection.
To complete the transfer process, you will be required to attend a driver and vehicle services centre or regional agent in person. For most light vehicles not requiring a roadworthiness examination, you will be required to provide an interstate vehicle licence application, proof of garaging in WA, proof of vehicle ownership, interstate number plates and proof of interstate registration.