For a motor vehicle accident that is deemed an insured event by an insurer, yes. And we are talking general insurers so the likes is AAMI, NRMA etc.
generally if someone was injured in a car accident in a fender bender, if they have full comp their car would be covered. if a passenger or someone else was injured they are covered by the cars CTP. some CTP include driver at fault cover (limited cover though)
If there was a big accident involving property damage and death a general insurer may have limitations on to what is and what is not covered.
this is why registered clubs and businesses have liability cover to cover them from further events and large losses for example loss of income, death, disability etc. imagine if a cruise had met at a carpark of a business, something catastrophic happened and was found the cruise had been the direct cause. i.e. if they werent there the loss would not have occurred. that business will claim on their insurance, and the insurance will want to recover off someone. you.