Understand Your Green Slip

In NSW you must buy a green slip before you can register your vehicle. Green slip is the common name given to compulsory third party (CTP) insurance in NSW. If your vehicle is involved in an accident, the green slip protects you against personal injury claims from third parties.

All greenslips are the same. The law provides for the level of compensation payable for certain injuries and losses. Drivers at fault are not covered to the same extent as other drivers. Three insurers offer At-Fault Driver Cover as a free added benefit on top of their greenslips.

Greenslips are different from other types of motor vehicle insurance. A CTP green slip covers only injuries to people, not property.

A green slip covers you for exactly the same period as registration, whether it runs for 6 or 12 months. This means renewals for greenslips and registration are due at the same time.

1. What does a greenslip cover?

A CTP green slip is mandatory insurance. It protects you from the financial burden of paying for somebody’s injuries in an accident involving your vehicle. Many drivers would not have the ability or desire to pay for extensive treatment and rehabilitation of others with serious injuries.

The purpose of a greenslip is that everyone can get the treatment they need, without depending on the financial situation of the at-fault driver involved. One day, you might be the person who needs that treatment.

2. What doesn't a green slip cover?

Greenslips or CTP insurance provide compensation for people injured or killed when your vehicle is involved in an accident, including other drivers, passengers, cyclists and pedestrians. This does not include damage to your car or other cars, damage to any kind of property, or theft of your vehicle.

Motorists can buy further insurance coverage on top of a green slip:  fully comprehensive insurance, fire or theft only, or third party property only.

3. Are all green slips the same?

Yes, all green slips provide the same cover, as required by law. If you are involved in an accident, a QBE green slip is the same as an AAMI green slip. There are still reasons to choose one provider over another:

  • Price
  • An existing relationship with a provider offering discounts on other insurance products you hold with them
  • One provider is more accessible, for example, you can visit them in person
  • Allianz, GIO and NRMA currently offer a free extra benefit for at-fault drivers, on top of their green slips.

4. What is At-Fault Driver Cover?

By law, all CTP green slips must provide the same statutory cover. This means the six green slip providers offer essentially the same product. Three providers – NRMA Insurance, Allianz and GIO – offer an extra free benefit on top of statutory cover, known generally as At-Fault Driver Cover. They offer this extra cover to differentiate their green slips.

The CTP scheme in NSW is based on finding the driver at fault in an accident. The scheme does not cover at-fault drivers to the same extent as other drivers or injured parties, unless they are catastrophically injured. Drivers holding At-Fault Driver Cover can claim designated lump sum benefits for their own injuries (or death) in a road accident.

5. Why do I need a green slip when I’m a good driver?

CTP greenslips are mandatory in NSW because even very good and experienced drivers are sometimes involved in road accidents.

CTP insurance protects you from the burden of paying for somebody else’s injuries, especially if they are serious and lifelong. Even good drivers may lack the financial resources to pay the considerable legal and health-related costs of treating somebody’s serious injuries from a car accident.

6. Can I cancel my green slip?

Yes, you can cancel your green slip at any time. To cancel your greenslip you must first cancel your vehicle registration. As long as you are the person who registered the vehicle, you can cancel registration any time at a motor registry or Service NSW. You also have to give up (or put on hold) your registration plates within 14 days.

Your greenslip insurer must see proof of cancellation of your registration by Roads and Maritime Services (RMS). You are entitled to a refund, based on the unexpired period of your green slip.

7. Can I get a refund on my green slip?

Yes, you can get a refund on your green slip if you prove registration of your vehicle is cancelled. Your greenslip provider must see proof from Roads and Maritime Services (RMS) before they can give a partial refund. You receive a refund, based on the unexpired part of the green slip, less the Medical Care and Injury Services (MCIS) Levy and insurer administration fee.

8. How do I know if the car I just bought has a current NSW greenslip?

When you buy a new car from a dealer, it will generally be registered and covered by a current NSW green slip, as part of the total driveaway cost. If you have bought a used car, always check whether registration on that car is current. If the car is registered in NSW, then it is also covered by a greenslip.

You can check how much registration, if any, is left on a used vehicle, and the name of the CTP green slip provider and expiry date.

Roads and Maritime Services (RMS) offers a free service to do this: Check a vehicle registration. You need the registration number only of the vehicle. The service does not reveal the name or address of the current registered owner.

9. Can I transfer a greenslip from one car to another?

No, you cannot transfer a green slip from one car to another, even if both vehicles belong to you. This is because a greenslip always stays with the vehicle, not the owner or driver of that vehicle. If you sell your vehicle, the greenslip and registration go with it, unless you cancel them.

10. Can I get a greenslip for 3, 6 or 12 months?

You can register a car or other light vehicle in NSW for 6 or 12 months only. The exception is for trailers or heavy trucks, which can be registered for 3, 6 or 12 months. In some cases you must register a light vehicle for 12 months:

  • First registration of a vehicle
  • If registration has lapsed by more than 21 days
  • When transferring a vehicle from interstate.

The period of your greenslip must match the period of registration and they are always due at the same time.

11. What is a pink slip?

A pink slip, also called an eSafety Check, is carried out by an authorised eSafety Station to check your car is roadworthy. You do not need a pink slip for registration until your vehicle is 5 years old. After that, a pink slip is required every 12 months and your registration renewal papers will say when one is due. The eSafety Station sends an electronic copy of your pink slip to Roads and Maritime Services (RMS) ready for registration.

12. What is a blue slip?

A blue slip is also known as an authorised unregistered vehicle inspection. If your vehicle is not currently registered in NSW (for example, registration is cancelled or you are transferring from interstate) then it needs a blue slip.

A blue slip is a safety and vehicle identification check that is more detailed than the usual eSafety Check or pink slip. You can get a blue slip from an eSafety Station or authorised vehicle inspection station listed on the Roads and Maritime Services (RMS) website. The eSafety Station sends an electronic copy of the blue slip to the RMS ready for registration.