The comparative value of CTP insurance
I am currently sitting on a beach in Hawaii contemplating the comparative value of CTP insurance having had an interesting discussion with a taxi driver this morning. Hawaii, like NSW requires all vehicle owners to have insurance as a requirement of driving a registered vehicle and there is a no-fault compensation scheme where the insurance company must pay medical and related bills for the driver and the passengers up to the ‘personal injury protection limit’ regardless of fault. The current personal injury protection limit is USD$10,000.
My driver pays (for his private car) about $700 a year for his insurance. This is of course in American dollars (about $950 Australian) and is for very limited cover – $40,000 bodily injury cover, $10,000 property damage cover and $40,000 to protect against the risk that he is the innocent victim in a car accident and the vehicle that causes the accident is under or uninsured. If a person is injured in a car accident he causes suffers loss beyond the reach of his policy he is exposed to a claim made against him personally.
Last time I paid for my greenslip (compulsory third party personal injury insurance) it cost me $470. There is no excess and no limit to the cover this insurance provides. I can run a bus load of brain surgeons off the road, injuring them all so they can no longer earn anything and it costs me nothing beyond my $470 greenslip insurance. I can be injured by someone else’s negligent driving and all my reasonable medical bills and loss of income will be covered (subject to some caps and limits introduced by the NSW Government’s recent third-party insurance changes).
When you think about it, and compare the scheme in the USA’s 50th state, our state’s greenslip insurance policy gives amazing coverage for a great price. Perhaps the NSW Government should publicise the coverage of its policy and focus less on price rises and the people of NSW might appreciate just what great value it is.
If you or anyone you know is injured has been injured in a car accident, you may be entitled to compensation. For more information, and to arrange a free, no-obligation assessment of your claim, please call Stacks Goudkamp on 1800 25 1800, or alternatively make an online enquiry.
Written by Belinda Cassidy.
Belinda Cassidy holds the position of Special Counsel at Stacks Goudkamp. She had previously held the position of Principal Claims Assessor at the State Insurance Regulatory Authority (SIRA) for 18 years, and currently holds an appointment as a Claims Assessor under the Motor Accidents Compensation Act.