Frequently asked questions

What is CTP?

CTP is short for Compulsory Third Party insurance. Every registered motorist in Queensland is required to pay for this insurance. Depending what type of vehicle you drive, the cost could be $750 or more a year. The compulsory nature of the insurance means if your vehicle injures any road user, the insurance cover will provide financial support to that person to help them recover from that injury. That may mean funding medical expenses or income loss. If your vehicle is unregistered, or you let your registration expire, your CTP insurance also expires.

What’s the role of government?

The Motor Accident Insurance Commission (MAIC) is the government statutory authority responsible for the regulation and ongoing management of CTP in Queensland.

The Nominal Defendant is also a statutory authority established to compensate people who are injured by the negligent driving of a vehicle which is not registered or cannot be identified.

Both MAIC and the Nominal Defendant were established under the Queensland Motor Accident Insurance Act of 1994 and are funded by a levy within the CTP premium paid by motorists.

The Chief Executive of MAIC is Mr Neil Singleton. He also fulfils the role of Queensland Insurance Commissioner and Nominal Defendant. 

MAIC and the Nominal Defendant are positioned within the Risk and Intelligence Division of Queensland Treasury. To find out more what the Queensland Treasury do, please follow this link https://www.treasury.qld.gov.au/about-treasury/what-we-do/

What’s the role of insurers?

The Queensland CTP scheme is underwritten by private insurers including RACQ, Suncorp, Allianz and QBE. These insurance companies accept premiums and manage claims on behalf of their policy holders. Compensation is paid to accident victims from their respective premium pools.

How do I find out who my CTP Insurance is with?

The Motor Accident Insurance Commission (MAIC) website has a handy search function to quickly tell you which insurer your CTP is with, or, if you are in an a motor vehicle crash, you can type the registration number of the car at fault and find out who their CTP insurance is with. Click here to search now. 

What should I do if I’m injured in a motor vehicle crash and I need to apply to the CTP scheme for help?

For information on how to apply to the CTP scheme for help, you have to complete a few activities. These activities are outlined on the Motor Accident Insurance Commission information webpage found via this link https://maic.qld.gov.au/how-to-make-a-claim/

What is the National Injury Insurance Scheme Queensland (NIISQ)

In 2016 Queensland introduced a scheme specifically designed for those injured people who have suffered catastrophic injuries in a motor vehicle crash, such as permanent spinal cord injuries and permanent brain damage medically classified either of a moderate or severe impact.

NIISQ covers treatment and care costs for injured participants who qualify for the scheme for as long as necessary, often for life. An injured person can be a participant whether they were at fault in causing the injury or not.

The entitlements are defined as ‘necessary and reasonable treatment, care and support’ and can include medical, pharmacy, dental, rehabilitation, respite care, aids and appliances (e.g. wheelchairs), prostheses, educational and vocational training to assist in returning to paid employment, home and vehicle modifications, personal care and domestic services.

NIISQ does not pay any income replacement or lump sum compensation.

NIISQ is run by the Queensland Government and is paid for by a levy that is part of the CTP insurance fees attached to a vehicle’s registration.

If a person has a motor injury claim and can demonstrate that the injury was another driver’s fault, they may choose to take all their compensation as a lump sum and ‘opt out’ of NIISQ. If the injured person was at fault however, they have no cover from the motor injury scheme but participate in NIISQ if they qualify based on the severity of the injury.

What is claim farming and why is it a problem?

Claim farming is when companies or individuals locate injured people from road traffic incidents, predominantly by repetitive cold calling from offshore call centres. They then on-sell the injured person’s personal details to either legal or other representatives to lodge a CTP claim with the insurance company, sometimes without the injured person’s knowledge. 

There are a variety of problems that arise from claim farming, including:

  • Harassing phone calls. These cold calls are to everyone, whether they have been injured in an accident or not.
  • Either law firms or third parties purchase the injured person’s personal details without their knowledge or consent and in some cases, lodge a CTP claim without their consent.
  • Claim farmers generally target low severity injuries, such as whiplash, as these are the most common form of road trauma and therefore, these types of injury claims transition through the CTP scheme faster, making them a prime target for these farming business models. As a result, the ‘farmers’ are generating more and more minor-type injuries into the scheme that shift scheme resources away from injured people with more severe or catastrophic injuries.  
  • CTP premiums could be reduced faster if these scams didn’t exist.
What is the State Government doing about claim farming?

The Queensland Government is currently debating proposed amendments to the Motor Accident Insurance legislation that will create two new offences:-

  1. the first offence removes the financial incentive for persons to engage in claim farming;
  2. the second offence bans claim farmers from approaching or contacting members of the public to solicit or induce them into making a claim under the CTP scheme.

To read more about the proposed amendments to be debated in parliament follow this link.

What is RACQ doing about claim farming?

We are working with the State Government, the Insurance Council of Australia and other industry stakeholders to eradicate this behaviour. This includes making recommendations on the most appropriate legislation changes, raising awareness among our members and the wider motoring community and social media education about what to do when you get one of these phone calls.

If you receive a claim farming call, get as much information about the caller as possible including their name, the company they work for and the phone number they are calling from. You can then lodge the details into the Motor Accident Insurance Commission ‘car crash scammer register’ at www.maic.qld.gov.au.

What should I do if I’m injured in a motor vehicle crash?

Your health and wellbeing are the most important thing. If you do get injured, you should seek appropriate medical advice and treatment as soon as possible. The sooner you seek appropriate medical advice and treatment, the faster your road to recovery can be.

ReThink CTP is an initiative of RACQ