A green slip is not new to everyone who is familiar with the insurance policies that are considered necessary in Australia. Since it is the CTP that is said to be compulsory, we can say that some people may question why they should have the CTP if they will be having a car insurance covering all the damages.
To answer such questions, we can say that having a CTP that is compulsory for most of the drivers in Australia due to many reasons.
It is not the only fact that when people get into an accident and they get injured, they also may cause damages and injuries to other people as well.
In that case, the other party can claim for the damages and injuries caused by the person at fault. In this manner, the loss is doubled because the person who is at fault will be paying for the third party and will be held responsible for the mess.
So, considering that accidents may happen anyways during the drive on the road and it could be a fault of the other party or you as well. In both cases, if the drivers have the CTP the other party or the third person who gets injured due to the accident may get compensated for the damages caused and that is why CTP has been made essential.
Due to the fact when the insurance company compensates the third party damages, they will be paying or compensating the third party but in fact, they are also covering the person who has obtained the CTP, how? It is simple when you don’t have to worry about the third party claims due to the accident, you are not going to get any financial impact and it is an indirect advantage of having a CTP or third party insurance.