All cyclists need to hold public liability insurance cover if they ride regularly because the same laws of negligence exist upon those of a negligent motorist and CTP Green Slip coverage does not extend to when riding a bicycle

Fortunately the CTP Green Slip provides a pool of funds to cover personal injury losses by an innocent third party due to negligence by another motorist.  However, there is no CTP Green Slip cover that a negligent cyclist may rely on to pay losses incurred by an injured third party due to the cyclist's negligence. 

A negligent cyclist could have material damages/costs awarded against him or her, following a civil action by an innocent third party(ies) that the negligent cyclist injured.   A negligent cyclist may subrogate their liability to their insurer should the negligent cyclist hold public liability cover, as public liability is negligence based, meaning the reason a cyclist would hold public liability insurance would be to cover against their negligence injuring a third party.  However, the 'denial clauses' in the public liability policy will invariably enable the insurer to denial liability to the insured, should the insured break a law in the action of injuring a third party. 

Because CTP Green Slip does not cover negligence whilst riding a bicycle, there is a vital need for -

(i)         a cyclist to hold third party insurance cover if he/she cycles regularly, and

(ii)        ride organisers to warn ride participants to hold third party insurance, as required under the Civil Liability Act 2002

[The Civil Liability Act 2002 do not require ride organisers to establish that ride participants actually hold third party insurance, merely to warn ride participants to hold third party insurance.]

Damages/costs could be millions of dollars if a negligent cyclist caused a third party to suffer injuries which negated the injured third party to earn his/her current income, particularly if the injured third party had a dependant family, mortgage etc.

See bicycle accident scenarios in Chapter 2.