Total and Permanent Disability
Total and Permanent Disability (TPD) Insurance Claims
You may not be aware of it, but the majority of working Australians hold Total and Permanent Disability (TPD) insurance. In most cases, TPD insurance is held within a person’s superannuation fund, and is one of the cheapest forms of health insurance you can get access to.
The conditions of each TPD insurance policy will differ, however the general requirement is that you must be unable to return to work on a permanent basis due to illness or injury. If your claim is accepted, then you will receive a lump sum payment.
Similar to general personal injury claims, TPD claims can be extremely complex and you are much better off seeking the assistance of a lawyer at an early stage to liaise with the insurer on your behalf and to acquire evidence of your disability or inability to work.
A simple TPD claim may take as little as 3 months to finalise.
More complex TPD claims can take up to 12 months to finalise.
The determining factors in the length of a claim are the nature and complexity of a claimant’s injury or illness, and the attitude of the insurer.
Each TPD claim is different however the cost will largely depend on the complexity of the claim and how long it takes.
Many law firms offer “fixed price” services in TPD claims. Usually however, they don’t tell you the “fixed price” until they view the size of your insurance policy. They will then provide a quote that is extremely similar (but not exactly) 10% of the value of the policy. In some cases, this could result in a payment of legal fees that far outweighs the legal work that was actually performed on the claim.
At BDN Lawyers, we will never reference our legal fees to the size of the TPD policy. We will always provide a quote having regard to the complexity of the claim. In our experience, this will always result in a significantly better outcome to our clients.
Yes, even if you have already received compensation through a motor vehicle accident, public liability or workers compensation claim, you can still make a claim through TPD insurance.
If you’re not self employed, the easiest way to work out if you have TPD insurance is to look at your most recent superannuation statement. While it is not compulsory for superannuation funds to provide TPD insurance, it is extremely common for such insurance to be included when a superannuation fund is established. Interestingly, if you have multiple superannuation funds, then you may also have multiple TPD insurance policies!
If you are self employed, then you may have purchased a stand alone TPD insurance policy or similar through a broker or financial advisor. If you have been injured and believe you might hold a form of TPD or disability insurance, then contact your broker to obtain copies of the product disclosure statements so that BDN Lawyers can tell you precisely what your entitlements are.