Total and Permanent Disability Insurance (TPD Superannuation) and Loss of use Claim

Published 01 Aug 2013

TPD Superannuation means that a person is unable to work and earn as a result of injury or sickness even though they have the right education, training or experience. The insurance is therefore designed to provide lump sum benefits to the insured in case they are unable to work because of injury or sickness contracted at work or at home. This loss of use claim insurance policy covers the debts of the insured, medical expenses as well as funds for permanent lifestyle changes and the living expenses thus reducing the burden as a result of loss of income. An example would include the cost of moving to home that will more accessible to you because of your current medical condition.

There are three types of Superannuation insurance:

  • Own Occupation - in this type of insurance, the claimant must be completely unable to work again
  • Any Occupation - this type of case requires that the claimant be unable to work in their current occupation and any other related to their training, education or experience again
  • Non-Occupational - in this case, the claimant must be totally unable to conduct at least 2 out of 5 activities of everyday living

How much will I be compensated?

The amount awarded as compensation largely depends on your current situation as a result of illness or injury. In NSW, the right amount should be able to cover the following:

  • The education expenses for your children
  • All the household expenses and utility bills
  • Meet all your medical expenses
  • The mortgage expenses, rent and other costs related to structures
  • Home modifications and rehabilitation expenses

Must the Disability be Work-related?

Many people despair to make a Super claim and Loss of use claim because they were involved in an accident when they were driving during the weekend with their friends. However, this is not the case. A few policies may specify that you must be unable to work again as a result of a work-related activity but many are silent on this matter. You will therefore be compensated.
If you had taken several Superannuation insurance covers then you can lodge a Loss of use claim with all of them. Depending on the terms of the policy you can lodge a Loss of use claim immediately or after a considerable period of time. This will largely depend on your ability to pay because the shorter the TPD Superannuation claim and Loss of use claim period, the more the amount payable in insurance premiums.

It is possible that you are permanently disabled but after quite some time you gain some energy to go back to work. Again, depending on the wording of your policy the TPD Superannuation benefits will stop. However, you may still qualify for partial disability payments.

The insurance company may refuse to pay you or underpay you unduly perhaps because you don't understand the policy document well. Just contact the Gerard Malouf solicitors and barristers to assist you lodge the claim and fight for you in court. If you are worried because you current income can't allow you to hire our services you can inquire from our representatives whether you qualify for the No Win No Fee Scheme.

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