Third-party insurance is compulsory for all vehicle-owners as per the Motor Vehicles Act.

What does compulsory third party insurance mean. CTP is defined as Compulsory Third Party insurance very frequently. It only makes sense that when third party insurance is compulsory owners of cars can have their damaged cars professionally repaired. CTP insurance covers compensation payments for people injured or killed in a motor vehicle accident.

What is Compulsory Third Party Insurance CTP. What Is Third-party Liability Car Insurance. This insurance provides compensation for people injured or killed when your vehicle is involved in an accident.

Third-party liability provides you with financial protection if you are found to be responsible for an accident resulting in property damage repairs personal injury or death. It is mandatory to have TPL on all Canadian automobile policies. In most states your CTP is included with your registration unlike NSW where you must.

The insurance covers any other drivers passengers in your car pedestrians or cyclists that have been affected by the accident. You cannot register your vehicle without having a policy in place. The Victorian compulsory third party insurance scheme is administered by the Transport Accident Commission TAC.

Definition of Third Party Insurance Definition. 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. So this is usually the other driver involved in an accident.

This means that owners can have their transport quickly reinstated which is great for the economy. The TAC pays compensation for death or injuries resulting from a transport accident. CTP stands for Compulsory Third Party insurance.