The loss of a loved one as a result of a car accident can be an immensely traumatic experience for family and close friends. The unexpected death will generally come with the emotional and financial stress of planning a funeral. If a family member or close friend has died in a road crash, you may be entitled to compensation.
In Australia, a compulsory third party insurance scheme (CTP) exists in most states. CTP covers funeral costs for almost all reasonable expenses.
This article explains how CTP works in each state and what can be claimed after a fatal motor vehicle crash.
What is CTP insurance and what does it cover?
Compulsory third-party insurance, otherwise known as CTP, is a form of insurance imposed across all Australian states and territories. It’s a form of insurance that provides compensation for people injured or killed when a vehicle is involved in a crash.CTP covers funeral costs for the holder of the insurance policy. This means they will not have to pay out of pocket for damage, injuries or deaths caused to other people as a result of a fatal vehicle accident. In some states and territories, CTP insurance will cover the cost of a funeral or a cremation but in others, it does not. In addition, CTP insurance does not cover the policy-holder for damage caused to vehicles (whether it is theirs or another party’s vehicle) in an accident. It also does not cover damage to property or theft.
How do you pay CTP insurance?
Many Australian states and territories, such as Victoria, Tasmania, Western Australia and the Northern Territory, include CTP insurance in their vehicle registration fees. This provides a simple and easy way to ensure you are covered when your car is registered. On the other hand, New South Wales, South Australia and the ACT have private insurance providers to choose from, as it is a separate process to the compulsory car registration. Each state’s CTP funeral cover will be explained further below.
Does CTP cover funeral costs in New South Wales?
In New South Wales, compulsory third party insurance (CTP) is commonly referred to as a ‘green slip’. New South Wales has a unique situation in which CTP and vehicle registration are kept separate.Rather, CTP covers funeral costs in New South Wales through six private insurers that motorists can choose from. In New South Wales, you are not required to prove fault in the accident to be eligible to make a CTP claim for coverage of funeral costs.All claims can be made through the State Insurance Regulatory Authority (SIRA). In NSW, CTP covers funeral costs including:
- Funeral director's professional fees;
- Cost of the funeral service (including cremation or burial);
- Coffin;
- Hearse or transport vehicle;
- Cemetery site;
- Flowers;
- Newspaper notice;
- Death certificate.
Does CTP cover funeral costs in Victoria?
CTP covers funeral costs in Victoria as part of the state’s vehicle registration cost. You are not required to prove fault in the accident to be eligible to make a CTP claim for coverage of funeral costs.All claims for the coverage of funeral costs in Victoria can be made through the Transport Accident Commission (TAC). The TAC can contribute a maximum amount of $16,200 towards the cost of a funeral, including burial, cremation and monument. The TAC can also pay up to $5,400 per family to cover the reasonable cost of travel and accommodation expenses within Australia for immediate family members attending the funeral of a TAC client.
Does CTP cover funeral costs in South Australia?
In South Australia, CTP and vehicle registration are separate. Rather, CTP covers funeral costs in South Australia in the form of “reasonable funeral expenses” through four private insurers which motorists can choose from. All claims for the coverage of funeral costs in South Australia can be made through SA’s CTP Insurance Regulator. You are required to prove fault in the accident to be eligible to make a CTP claim for coverage of funeral costs.
Does CTP cover funeral costs in Queensland?
CTP and vehicle registration are also separate in Queensland. CTP covers funeral costs in Queensland in the form of “reasonable funeral expenses” through six private insurers which the people of Queensland can choose from. All claims for covering funeral costs in Queensland can be made through the Motor Accident Insurance Commission (MAIC). You are required to prove fault in the accident to be eligible to make a CTP claim for coverage of funeral costs.
Does CTP cover funeral costs in the Northern Territory?
CTP covers funeral costs in the Northern Territory as part of the territory’s vehicle registration cost. All claims for the coverage of funeral costs in Northern Territory can be made through the Territory Insurance Office (TIO). You are not required to prove fault in the accident to be eligible to make a CTP claim for coverage of funeral costs. The TIO will cover the reasonable cost of funeral expenses up to a maximum of 10% of the annual Average Weekly Earnings for all employees in the Northern Territory (up to the value of $8,848, at January, 2021).
Does CTP cover funeral costs in Western Australia?
CTP covers funeral costs in Western Australia as part of the state’s vehicle registration cost. In Western Australia, you are required to prove fault in the accident to be eligible to make a CTP claim for coverage of funeral costs. You may claim funeral and headstone expenses up to $10,000.All claims for the coverage of funeral costs in Western Australia can be made through the Insurance Commission of Western Australia (ICWA).
Does CTP cover funeral costs in Tasmania?
CTP covers funeral costs in Tasmania as part of the state’s vehicle registration cost. All claims for covering funeral costs in Tasmania can be made through the Motor Accidents Insurance Board (MAIB). The MAIB will pay up to $11,415 to cover the reasonable costs associated with the burial or cremation. Costs associated with the gravestone or plaque are not covered. In Tasmania, you are not required to prove fault in the accident to be eligible to make a CTP claim for coverage of funeral costs.
Does CTP cover funeral costs in the Australian Capital Territory?
CTP and vehicle registration are separate in the Australian Capital Territory (ACT). CTP covers funeral costs in the ACT through six private insurers which motorists may choose from. All claims for covering funeral costs in the ACT can be made through the Motor Accidents Injuries Commission (MAIC). You are required to prove fault in the accident to be eligible to make a CTP claim for coverage of funeral costs.The person paying for the funeral can apply for funeral benefits. Funeral expenses of up to $15,000 are covered and can include:
- Transport;
- Certificates and permits;
- Funeral director fees;
- The cremation or burial; and
- The funeral or memorial ceremony.
However, the ACT’s scheme will not pay for the costs of a wake or memorial service.
Final thoughts on CTP insurance
CTP covers funeral costs differently in each state and territory, as there are different circumstances that apply to each claim after a fatal motor vehicle crash. To claim the costs of a funeral for a loved one who died as a result of a motor vehicle crash, you will need to apply through the transport authority in the relevant state.
Grief and bereavement support
If you’re struggling to cope with grief after a loss, there is help available. You can reach out to a close friend or family member, or speak with your GP. Alternatively, the Australian Centre for Grief and Bereavement provides excellent information on bereavement services available throughout Australia. But for more immediate help call Lifeline on 13 11 14.
More information on grief support is available on the Bare Cremation website, including our articles Experiencing grief on the death of a loved one and What to do when someone dies and Coping with grief and how a personalised memorial can help.If you have any further questions or to get a quote for a cremation visit the Bare Cremation website or call 1800 071 176.
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