In Queensland, CTP insurance is bought with registration. Let the registration lapse and the vehicle is uninsured, whatever the owner intended. The scheme deals with the consequences in two directions: it makes sure the injured person is compensated, and it makes sure the cost lands on the person who was uninsured.

Key points

  • A person injured by an unregistered vehicle claims against the Nominal Defendant, which stands in for the missing insurer.
  • The Nominal Defendant can recover what it pays from the owner and driver of the unregistered vehicle, who may be personally liable for the full amount.
  • Driving unregistered also attracts fines; check registration before the vehicle is used, especially borrowed or newly purchased ones.

The injured person's claim

A claim for injury caused by an uninsured vehicle is made against the Nominal Defendant under the Motor Accident Insurance Act. It is funded by a levy on every CTP premium, and it pays claims on the same basis as an insurer. The process is the ordinary CTP process: police report, Notice of Accident Claim, liability response, rehabilitation, compulsory conference. For an identified uninsured vehicle the notice period is the ordinary nine months (or one month after seeing a lawyer); the three-month period and the nine-month bar apply where the vehicle is unidentified.

Passengers in the unregistered vehicle, and the driver of another vehicle it hit, are all in the same position. A person who knew the vehicle was unregistered and rode in it anyway may face a contributory negligence argument, which reduces rather than bars the claim.

The owner's and driver's position

MAIC's guidance puts it plainly: if an accident involves a vehicle without registration and CTP insurance, the driver and owner may be financially liable for the damages paid to the injured person. The Act gives the Nominal Defendant a right to recover from the owner and driver the amount it has paid out, together with costs. For a serious injury that can be a sum that follows a person for life. The Nominal Defendant does exercise these rights.

A lapse is enough

The commonest case is not deliberate. Registration was due, the renewal was missed, and the vehicle was driven a week later. The insurance goes with the registration; a lapse of a day is a lapse. Queensland registration can be checked online by plate number in seconds, which is worth doing for a vehicle you have just bought, borrowed or been given, and for your own before a long trip.

The at-fault driver's own injuries

CTP never covers the at-fault driver's own injuries, insured or not. An unregistered driver injured in an accident they caused has the same options as any at-fault driver: NIISQ for catastrophic injuries, WorkCover if the driving was for work, and income protection or TPD through super.

Frequently asked questions

I was hit by an unregistered car. Can I still claim? Yes, against the Nominal Defendant, with the ordinary CTP notice period of nine months (or one month after seeing a lawyer) for an identified vehicle.

I was driving unregistered and caused an accident. What happens? The injured person is compensated by the Nominal Defendant, which can then recover the amount from you and the vehicle's owner personally. Get advice as soon as you are contacted.

Does the Nominal Defendant pay less than an insurer? No. Compensation is assessed on the same heads of damage under the same law.

Sources

  • Motor Accident Insurance Act 1994 (Qld), ss 31 (claims against the Nominal Defendant), 37 (notice of claim), 58 (Nominal Defendant's right of recovery from owner or driver of uninsured vehicle) — legislation.qld.gov.au
  • Motor Accident Insurance Commission, Frequently asked questions (liability of owner and driver of an unregistered vehicle) — maic.qld.gov.au
  • Queensland Government, Check a vehicle's registration — qld.gov.au