What Does a Green Slip Cover and What It Doesn’t?
Understand your Green Slip (CTP insurance). Learn its precise coverage for personal injuries and key exclusions, distinguishing it from other vehicle insurance.
A “green slip” refers to a form of compulsory third-party (CTP) insurance, a mandatory requirement for vehicle registration in many regions. This type of insurance primarily functions to provide financial protection for individuals who suffer injuries in motor vehicle accidents. Its fundamental purpose ensures that medical expenses, lost income, and other related costs for injured parties can be covered, regardless of the at-fault driver’s ability to pay. Mandatory insurance covering personal injury to others is a foundational aspect of motor vehicle regulation across jurisdictions, including many in the United States.
What a Green Slip Covers
A green slip, or compulsory third-party (CTP) insurance, focuses exclusively on covering personal injuries sustained in a motor vehicle accident. This coverage typically extends to medical expenses, hospital stays, doctor visits, and specialized treatments. It also provides financial support for lost income if an injured individual is unable to work due to their injuries, and it may cover the cost of care services needed during recovery.
The protection offered by this insurance covers a broad range of individuals affected by an accident. This includes other drivers, passengers, pedestrians, and cyclists who sustain injuries when the policyholder’s vehicle is implicated in the incident. In many schemes, coverage is extended to injured parties regardless of who was at fault for the accident, particularly for severe injuries, ensuring access to necessary medical treatment and rehabilitation. Some states in the US, known as “no-fault” states, require Personal Injury Protection (PIP) which covers one’s own medical expenses and lost wages regardless of fault.
What a Green Slip Does Not Cover
A green slip, or CTP insurance, has specific limitations regarding what it does not cover. This type of policy does not provide coverage for damage to vehicles, whether it is your own vehicle or other vehicles involved in the accident. The policy also explicitly excludes damage to property, such as fences, buildings, or street signs, that may occur as a result of a motor vehicle incident.
A green slip does not cover the theft of your vehicle, as its scope is strictly limited to personal injury. While it protects others, it generally does not cover personal injury to the at-fault driver, with exceptions often being made only for severe injuries or under specific state-mandated schemes like Personal Injury Protection (PIP) in “no-fault” jurisdictions. This type of insurance is solely for personal injury liability and is not a substitute for policies designed to cover property damage or vehicle loss.
Green Slip vs. Other Car Insurance
A green slip, or compulsory third-party (CTP) insurance, serves a distinct purpose compared to other types of vehicle insurance. Its primary function is to cover the financial liability for personal injuries or death caused to other individuals in a motor vehicle accident, making it a mandatory component of vehicle registration in most places.
In contrast, Comprehensive Car Insurance offers broad coverage for damage to your own vehicle, collisions, theft, fire, or natural disasters. It frequently includes coverage for damage you cause to other vehicles or property. Third-Party Property Damage Insurance specifically covers damage you inflict on other people’s property, including their vehicles, but it does not cover damage to your own car.
While CTP insurance is a legal requirement focused on personal injury liability, Comprehensive and Third-Party Property Damage policies are typically optional, providing protection for vehicle and property damage. Drivers often choose to combine these different types of insurance to ensure comprehensive protection for both personal injury liabilities and property-related risks.