If you own a car and live in New Zealand or Australia, chances are you’ve heard of the phrase “green slips”. It is actually a popular by-word among drivers and car owners, but many are confused as to what a green slip really is. In just a few words as possible, this article will explain everything you need to know about this topic.
In the simplest definition, a green slip is a form of car insurance policy which provides payment for individuals who are killed or injured in a vehicular accident. This is a legal requirement in many cities, and vehicles without a green slip are not allowed to drive around, or much worse, they are penalized for not having third party insurance. The legal term used for this is Compulsory Third Party Insurance, or simply CTP.
Third party insurance is very important for drivers and vehicle owners because it shields them from possible expenses in the event that unfortunate incidents occur. Car accidents are real, and they can happen to anyone. While most drivers may not experience being in a car accident all their lives, still it is important to make sure that they are covered in the event that something unexpected happens. It is better to be safe than sorry.
Like medical insurance, CTP green slips have many providers that vary in cost and coverage. There is no single institution or company that acts as the sole provider for all vehicles. However, there are certain basic characteristics of a green slip that is common to all, regardless of who is the provider:
What A Greenslip Does
It provides monetary compensation to those involved in a car accident, whether they are killed or merely injured. The coverage is not limited to drivers or their direct “victims” but others who may be affected such as pedestrians, passengers, motorcycle riders, drivers of other vehicles and even the driver at fault (subject to various factors and circumstances).
What A Greenslip Does Not Do
- Compulsory third party insurance doesn’t cover the driver at fault, except if he himself is badly injured, incapacitated or killed in the accident. There are various criteria that should be met before the driver at fault can be covered by the green slip.
- Damage to other vehicles and property are not included in the coverage. Meaning, the compensation is paid only to the people involved in the accident, but payment will not be based on the extent of damage to property.
- Vehicle theft is usually not included in a CTP insurance policy, unless otherwise stated by the provider.
As a car owner, it is important to know the various kinds of CTP insurance in your state so that you can take the necessary precautions. Be aware of the leading providers in the country, and try to compare each provider’s cost and coverage to ensure you only get your insurance from the most reliable provider.