TPD (Total Permanent Disability) claims are made when an injury or illness causes a person to have a permanent total disability and prevents them from working or earning. These claims are most commonly submitted through an insurance policy, either through a superannuation fund or a private insurance company.
TPD pays off in instances when people cannot earn any form of income due to their disability. The claim could be useful for paying medical bills, day-to-day expenses, and other costs arising from the disability. To lodge a claim, the claimant must demonstrate that they suffer from a chronic condition that renders them incapable of engaging in any form of economic activity.
Most people in Australia have TPD insurance as part of their superannuation. However, not all policies are created equal, and there can be differences in the requirements. Some policies may apply for a claim based on one’s inability to perform their occupation fully, while others may cover the inability to perform any occupation the person has done before.
While TPD claims are well-known, many people lack personal experience with them and are unsure of the process. TPD claims can be complicated and require medical checks, so most people seek legal or financial assistance to navigate the process.
Success Rate of TPD Claims
In 2021, life insurance companies had an average TPD claims acceptance rate of 86.8 per cent. However, recent data reveals a significant improvement, with the industry average rising to 93.6 per cent in 2022, showing a notable increase in just one year.
The average processing time for a TPD claim in 2022 was 7.5 months. Among insurers, TAL/Asteron stood out as the fastest, with an average processing time of 6.2 months, while Zurich/OnePath was the slowest, averaging 8.8 months.
The report also highlights that acceptance rates across all types of insurance coverage remained relatively consistent from 2021 to 2022. However, data from APRA and ASIC shows a steady improvement in the overall claims acceptance rates, with TPD claims rising from 86.6% in 2018 to 86.8 per cent by 2022.
According to data from SuperRatings, approximately 71 per cent of these claims are approved, meaning nearly 30 per centof claimants miss out, often failing to receive their full entitlements.
Is Claiming a TPD Payout Difficult?
How well you fit the definition in your insurance coverage will determine how your TPD claim turns out.
Unfortunately, the strict standards set by insurance companies lead many people to abandon their claims. Although the paperwork might seem straightforward, insurers often look for reasons to reject or deny claims. A good outcome relies on presenting solid, convincing evidence. Therefore, working with an experienced total permanent disability lawyer is strongly recommended to maximise the chances of receiving your payment.
Read this also: What are Special Damages in Personal Injury?
Contact United Legal Canberra with all your questions regarding TPD claims. We will help you get most of your claim! Talk to our representative today for a free consultation. We will review your insurance needs and take prompt action on your behalf. For more information, call (02) 8355 907483 or email us at admin@unitedlegal.com.au. Scheduling an appointment takes just a few minutes.
