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TPD insurance

How and when can I claim it?

Posted: March 06, 2024

TPD insurance – most of us have heard of it, but there’s still a lot of uncertainty around what TPD insurance actually is and, when and whether, we can claim it.

If you have been impacted by debilitating injury or illness you may be eligible to claim through your super.

Our director and compensation lawyer Melody has the answers to five commonly-asked questions.

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TPD insurance – what is it?

TPD stands for Total Permanent Disability. TPD insurance is insurance often held within your superannuation. It is designed to provide a lump sum payment where you have become totally and permanently disabled.

Each superannuation policy has a slightly different definition for what TPD is.

If you have an ‘Own Occupation’ policy, then you generally need to show you are unable to ever be able to carry out your own occupation in the future due to some injury or illness.

‘Any Occupation’ policies are much more common. You will generally have to show that you are unable to ever again carry out any occupation for which you are reasonably qualified for, given your education, training and experience, due to your sickness or injury.

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How much is a TPD insurance payout?

It is not uncommon for TPD insurance policies to be in excess of $500,000 but it really does depend upon the particulars of your insurance policy.

The amount that you can claim depends upon the terms in your insurance policy.

If you have more than one superannuation policy it is possible for you to claim several lump sum payouts.

The amount you can claim is outlined in the policy and you can check your annual statement for this figure. It is a lump sum amount, that generally reduces the older you get.

TPD Insurance – When can I make a claim?

If you believe you fit within the definition of TPD in your policy/policies.

The sorts of injuries or illnesses which may you lead you to be totally and permanently disabled can include the following:

  • Injuries sustained in motor vehicle collision

  • Injuries sustained in a work accident

  • Cancer

  • Significant impairment to one of your limbs

  • Loss of sight

It really depends upon the type of work that you usually do and the wording of your policy.

What's involved in making a TPD claim?

Insurers have TPD packs that can be obtained to start the TPD application process.

There are application forms to fill out, and each policy requires different supporting material.

Often you are required to supply a medical report in an approved format from your treating general practitioner, as well as a medical report in an approved format from a treating specialist.

The process commences with lodgement of all of the required paperwork with the fund.  Then the fund may have questions and may commence their own evidence gathering process.

The amount of information sought by a fund will depend upon the wording of the policy and the seriousness of the injuries or illness.

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TPD Insurance claims – is it “no win no fee”?

At Purcell Taylor Lawyers, We regularly act for our clients on a “no win no fee” basis to lodge TPD claims.  That is, we ask our TPD clients to pay our professional fees when they receive their TPD payout.

We offer a free initial consultation to allow us to obtain information and make a decision whether we can act on a “no win no fee” basis.

Often, TPD payments are made during times of financial hardship and very ill health.  TPD claims may also be made in conjunction with other claims, including income protection claims and other compensation claims.

Please feel free to contact us should you wish to arrange a free initial TPD consultation.