Compulsory Third Party Insurance Naming Is Confusing

Frankensnore on 25/08/2025 - 22:35
Last edited 26/08/2025 - 15:28

I met someone who genuinely thought she had CTP Insurance and that is the same with third party insurance. As someone who like to make sure I am financially covered, this was shocking but understandable as I remembered I was confused about it when I first move to nsw.

I wonder how to propose a change to it? This can be very costly mistake otherwise.

Some other ideas:

  1. Includes information in every license renewal, the same way as banks are required to remind us to have Home insurance.
  2. Includes it in Learners test
  3. Remove or change the name of CTP, instead make an all in one package like Victoria.
  4. Make it mandatory to have.

Further thoughts:
Imagine if someone is on paycheque to paycheque and they accidentally bump your car. you demanded a repair, maybe through your insurance, maybe not. maybe you or the insurer will force a lawsuit order to seize their assets. what happen to this person? what would be going through their head? What if they live in your neighbourhood?

Automotive Compulsory Third Party Insurance Insurance

Comments

  • Save 50 Cent on 26/08/2025 - 22:17

    I am with you on this.. I came across many people who drove around thinking they had 3rd party insurance while they only had CTP. Especially the young ones when they start driving.
    I even know of someone who bought a used bike and the bloody dealer made it sound like they were doing him a favour by including insurance in the drive away price! Dude had no idea until I told him!

  • Eeples on 27/08/2025 - 01:06
    +1

    I met someone who genuinely thought she had CTP Insurance and that is the same with third party insurance.

    You should be saying ‘third party property insurance’ at the end of this sentence.

    If everyone used the correct names it might result in less confusion.

  • ratman on 27/08/2025 - 07:03

    I didn't realise that CTP insurance initials stood for "Compulsory Third Party" insurance. I was always taught it stood for "Compulsory Third-party Personal" insurance. I.e. no property cover.

    Maybe they sound just change the name to make it clear.

  • Wasabi Ninja on 27/08/2025 - 07:56
    +2

    “CTP insurance is compulsory in WA. CTP insurance is provided by the Insurance Commission of Western Australia as part of motor injury insurance. It is paid when you register your vehicle with the Department of Transport. Your vehicle must be registered in order to drive on public roads in WA.“

    Easy. Fall inline rest of Australia

  • Pufff on 27/08/2025 - 13:34
    +2

    Whatever you call something there will always be someone who interprets it in another way. Lets not try to accommodate everything to the lowest denominator.

  • Munki on 27/08/2025 - 16:06

    I dunno, just keep calling it a greenslip and not mention insurance when you're referring to that.

  • Erwark on 27/08/2025 - 18:12

    This is in the Mathematics Standard syllabus for NSW.
    MS-F1.3: Budgeting and household expenses: […] describe the different types of insurance available, including compulsory and non-compulsory
    third-party insurance, and comprehensive insurance.

  • Kinjiru on 28/08/2025 - 09:10

    I've seen someone not understand this, get into an accident, and then was out of pocket $$$. I agree that it is confusing. From memory, the full name used to be "Compulsory Third Party Personal Injury Insurance" so at least you understood that it was related to personal injury and not property.

  • workhappens on 28/08/2025 - 12:22

    Just teach this difference to AI. The next generation and even the current will be relying on it more and more, from jobs, to everyday tasks, to making friends, to researching etc. People are using their critical thinking skills less and less and this trend will only continue.

Login or Join to leave a comment
Login Join