Boats are not cars when it comes to CTP insurance

BUSH ‘n Beach has brought Nautilus Marine Insurance on board to expand the fine print and provide readers with clear, easy-to-understand and helpful tips on protecting their boating assets.

If you want a lively discussion during New Year celebrations, casually ask those standing around you what they think their car’s compulsory third-party insurance protects them against.

If you actually know what CTP covers, you will probably be stunned by some of the incorrect answers you hear. And then, if you really want to escalate the spirited discussion, particularly if standing in a boat club at the time, ask the same people whether Queensland has CTP coverage in the annual boat registration cost.

The short answers to those questions are: What does car CTP cover? A lot less than many people believe it does. And CTP boat insurance? There is no cover or protection provided with your boat’s annual registration.

So now understanding that in CTP insurance terms, a car is not a boat, let’s break it down a little. Your annual car registration has two key components: the registration and associated costs and the compulsory third-party insurance component. The Queensland Government’s Motor Accident Insurance Commission clearly states that CTP provides cover for any person injured in a motor vehicle accident… and then clarifies issues such as fault, vehicle driver, ownership and so on.

It also clearly states that CTP does not cover damage to other vehicles or property.
However, many people think CTP also covers the damage they might do to another vehicle.
It does not.

If your $1000 car has nothing more than registration and CTP when it crashes into the latest model prestige SUV with you being at fault, be prepared for a serious bill and/or damages claim from the other driver or insurer.

Yes, in general terms you will be covered against any injury claim from people in the SUV at the time of the accident, but that SUV repair will be headed your way in one form or another.
A $1000 car not worth insuring, or at least taking out a form of extended cover to protect you against property damages claims?

Think again, unless you have countless reserves of cash and assets and are prepared to hand them over to make good the damage you caused. When it comes to boats, there is no CTP cover associated with your annual registration.

So if ever things go pear-shaped in the marina and your $2000 tinnie, which you didn’t believe worth insuring, careers into a series of luxury cruisers gouging unsightly rashes into their immaculate flanks, again you can expect a series of very expensive bills to be headed your way.
And if someone was injured during that incident, the bills will probably be even greater.
Potentially, your $2000 tinnie could cost you hundreds of thousands of dollars, or even more, simply because you did not believe it worth insuring.

Specialist marine insurers such as Nautilus Marine provide a public liability coverage within their policies. So irrespective of whether you have a $2000 tinnie or a $2 million cruiser, you can enjoy your boating knowing you are covered for any injury to people or damage to property.

Like other specialist marine insurers, Nautilus sets limits to the amount of coverage, depending on factors such as where and how you use your boat as well as what you agree to be a reasonable level of protection. If you are determined not to comprehensively insure your $2000 tinnie and thereby inherently secure public liability cover, you can just take out a third-party cover.

That means your tinnie won’t be insured, but any damage caused by it due to your negligence will be covered within the limits outlined in the policy. Finally, just who are these ‘parties’ in CTP?

Well, in terms of car insurance, the first party is the owner or driver of the vehicle ‘at fault’. The second party is the CTP insurer of the vehicle at fault. The third party is the injured person.

In a boating context, it’s the other person.To own or drive a boat that does not have some level of insurance protection against the injuries or damage it may cause to others is to run a very, very serious risk of crippling debt should a claim ever be made against you.

Remember, there’s no automatic provision against it in your annual registration fee. Finally, as with all insurance policies, always check your product disclosure document and if you have a query, ask for clarification.

If you need further information, you can contact Nautilus Marine Insurance on 1300 780 533 for any boat insurance requirements.