Definition of Third Party Insurance Definition.

What does compulsory third party insurance mean. CTP is defined as Compulsory Third Party insurance very frequently. CTP is an abbreviation for compulsory third-party insurance. Compulsory insurance is mandatory for individuals and businesses that want to engage in certain.

That means the CTP insurance you select when you register your car would pay for another. This insurance provides compensation for people injured or killed when your vehicle is involved in an accident. If another party causes the accident their compulsory third-party insurance will be used to compensate any victims.

Motor third-party insurance or third-party liability cover which is sometimes also referred to as the act only cover is a statutory requirement under the Motor Vehicles Act. In most states your CTP is included with your registration unlike NSW where you must. Compulsory third party insurance CTP is a category of Motor vehicle insurance that insures any person except the driver who was at fault and who is injured or killed in a motor vehicle accident as result of a drivers negligence.

The TAC is the sole insurer under the scheme. It provides compensation for people injured or killed in a car accident that is deemed to be not their fault. If youre responsible for a car accident your compulsory third-party insurance will be used to pay any compensation due to anyone who might be injured or killed.

CTP stands for Compulsory Third Party insurance. This means that owners can have their transport quickly reinstated which is great for the economy. How is Compulsory Third Party insurance abbreviated.

So this is usually the other driver involved in an accident. You cannot register your vehicle without having a policy in place. It only makes sense that when third party insurance is compulsory owners of cars can have their damaged cars professionally repaired.