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CTP Insurance vs. Liability Cover

Understanding the Key Differences in Queensland Motor Policies

CTP Insurance Cover in a Motor Policy in Queensland

Key Features:

-Fault-based System: Queensland's CTP scheme operates on a fault basis, meaning the injured part must prove the other driver was at fault to claim compensation
-Administered by the Motor Accident Insurance Commission (MAIC)
-Included automatically as part of the vehicle registration process

Coverage:

-Covers compensation for personal injuries to third parties, such as passengers, pedestrians, cyclists, or occupants of other vehicles, caused by the insured driver
-Covers medical expenses, rehabilitation costs, loss of income, and general damages (pain and suffering) for injured third parties
-Does not cover:
*Damage to property or vehicles.
*Injuries to the at-fault driver.

Premiums:

-Set by insurers but monitored and regulated by Motor Accident Insurance Commission (MAIC).
-Premiums are influenced by:
*Vehicle type.
*Usage (e.g., personal vs. commercial).
*Insurer-specific pricing.

Example:

If you run into a cyclist and cause serious injuries, your CTP insurer will pay for the cyclist's medical treatment and rehabilitation
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Liability Cover in a Motor Policy in Queensland

Key Features:

-Not included in CTP; it's part of your motor insurance policy (third-party property or comprehensive)
-Provides financial protection for property damage claims made by third parties

Coverage:

Third-Party Property Damage Policies:
*Covers damage you cause to other people's property (e.g., their car or a building)
*Does not cover your car or your injuries

Comprehensive Policies:

Covers third-party property damage and damage to our own vehicle.
May include optional personal injury extensions for situations not covered by CTP.

Premiums:

Determined by private insurers, with variations based on factors like:
*Your driving history
*Type and value of the vehicle
*Location and risk profile

Example:

If you accidentally crash into someone's car and their car required $10,000 worth of repairs, your liability cover under your motor policy will pay for these costs. however, you mush pay for repairs to your own car unless you have comprehensive insurance
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How They Work Together in Queensland