Having CTP is necessary if you are a resident in Australia since it helps the insurance owner and the third party in many different ways, it is necessary to have it.
In Australia, the green slip is always there that governs the minimal levels of insurance and protections against damages but instead of providing the minimal level of financial protection caused due to the vehicle of insurance owner, it’s determined by the damages and loss of the third party vehicle.
We can surely understand that if an accident takes place it’s I, not the two parties that may be involved with the scenario, rather there could be a third party which may get involved within the impact area and may get damaged due to the impact.
In such cases, the third party may claim compensation for the damages caused by the vehicles and the accident and that occurred without any involvement from their end. In that case, the people or the vehicle owners may be considered obliged to pay for the loss and damages caused to the third party.
Having a ctp solves all such issues and may help in getting through such claim in a safe manner without overburdening any of the involved people.
The compulsory third party insurance not only helps the third party in getting the just compensation for their damages and loss caused in an accident, but it also determines protection levels for the insured people so that they may not have to bear with the loss caused to the third party.
Though it does not include all the expenses and protections against the damages for the person who has it still it is beneficial and mandatory in order to deal with unnecessary issues and financial problems caused accidentally.
Compulsory third party insurance helps in a dual manner one is for the third party and while protecting and covering the third party it actually covers the one who has it by paying on behalf of the insured person to compensate the third party damages.