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2nd Risk Mitigation Message

Each Australian who registers a motor vehicle has to pay a CTP Green Slip third party insurance premium which covers the driver against any negligence based claims whilst driving that vehicle.  No such mandatory third party public liability insurance covers cyclists unless they join a bicycle racing club.  Explicit third party insurance and some personal injury cover is provided in annual membership of Bicycle NSW, Bicycle Victoria etc.  However, such annual membership is not mandatory.  Casual empiricism suggests that at least 30% of bicycle riders do not have third party insurance which covers a negligent act that they may commit whilst cycling which results in a serious injury to a third party.  It may be a lot higher than 30%. 

No Compulsory Third Party ("CTP") Green Slip insurance coverage or equivalent for cyclists in Australia explains that without explicit third party insurance which covers a cyclist's negligence, a negligent cyclist  -

(i)         could be exposed to litigation, incurring significant legal costs coupled with the prospect of a court order to pay an injured third party a very large settlement – potentially millions of dollars – in the event that the cyclist is found to be negligent and the third party is seriously injured ie paraphlegia with materially diminished future income opportunities and high on-going costs;

(ii)        may not be able to afford to defend such actions brought against them; and

(iii)       may face serious financial hardship or may be bankrupted by the consequences of a court award made against a negligent cyclist (ie. another bicycle ride participant or say a women pushing a stroller). 

Many Ride Leaders in Community Bicycle Groups are not cognisant of their legal obligation to warn ride participants to hold current third party insurance which covers any negligent act whilst cycling, as not being able to fall back on a third party policy is a patent obvious financial risk for a cyclist whose negligence results in a serious accident to a third party. 

A further risk is that a negligent ride participant may then seek through a separate action a 'right of contribution between tortfeasors' from the Ride Leader and/or Community Bicycle Group if the negligent ride participant -

(I.)         argued that he/she was not informed of the financial risk of not holding third party insurance; and

(II.)        thereby sought the Ride Leader or Community Bicycle Group to contribute to costs/damages awarded against the negligent ride participant.

Hence, a Join a Green Team Team Jersey should display:

        "Failure to hold third party insurance which covers cycling could financially ruin a negligent cyclist."