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CTP insurance is compulsory in every state in Australia and is paid as part of vehicle registration. It covers the vehicle owner and any person who drives the vehicle against claims for liability for death or injury to people caused by the fault of the vehicle owner or driver. CTP may include any kind of physical harm, bodily injuries and may cover the cost of all reasonable medical treatment for injuries received in the accident, loss of wages, cost of care services and, in some cases, compensation for pain and suffering. Each state in Australia has a different scheme.

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Third Party property insurance or Comprehensive insurance covers the third party with the repairing cost of the vehicle, any property damage or medication expenses as a result of an accident by the insured. They are not to be confused with the Compulsory Third Party.

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