Explaining Total and Permanent Disability Claims
If you have suffered an injury or illness and can no longer do the work you once did you may be entitled to a total and permanent disability (TPD) insurance benefit. RMB's Compensation team explains:
A total and permanent disability claim entitles you to make a claim for a lump sum payment if you suffered an injury or illness that prevents you from returning to work in the same capacity.
You may use this benefit to fund current and future medical expenses, clear any debts you have and assist with covering the loss of income for years to come.
A TPD benefit generally is available through your superannuation fund or you may be covered through a private life insurance policy.
Eligibility for making a TPD claim will depend on the requirements set out in your policy, as well as showing you have suffered a minimum level of disability and are unable to return to your previous role or to work at all.
Most policies require a waiting period after your injury to allow you to recover and exhaust all treatment options prior to making the claim. Some policies also require a minimum level of employment in order to seek a TPD payout and may take into account your years of service or hours worked per week.
Not all superannuation policies have built-in TPD cover, and cover and entitlements differ between policies.
Determining whether an entitlement exists can be tricky and it is recommended that you seek legal advice as early as possible to ensure the appropriate processes are followed and all relevant medical and employment history is contained in your application.
To commence a claim you need to contact the appropriate insurer advising of your intention and they will in turn forward you all the necessary claim forms, employment criteria and medical forms. Once this information has been provided and collated, by yourself or a legal representative, the insurer will review all the necessary paperwork and determine if you are entitled to make a claim against the insurance policy and how much you are entitled to be paid out.
Most TPD claims can be resolved in approximately six months depending on the circumstances and issues raised by the insurer. Generally you will receive a lump sum payout and at the time of payment you can also consider taking out the employer contribution of your superannuation entitlements and close down the fund completely.
Have you been injured and can't work anymore? You can contact us. We'll be able to help you via a quick phone call, ask us a question via email or even chatting with you online as time limits apply to these claims.