What's the difference between TPDs and TTDs?

Published 27 Dec 2018

Regardless of fault or cause, if a person suffers an injury or illness and is no longer able to work a normal job, superannuation and insurance claims could allow them to receive necessary compensation.

TPD and TTD insurance claims are similar in Australia, but there are some important differences to be aware of.

What is TPD?

TPD stands for Total and Permanent Disability. These insurance claims are meant to provide financial help to people who can't work normally. This could be due to a physical injury or disability, a health problem or a mental disability. Those who qualify will also get access to their superannuation fund early.

To receive TPD benefits, the applicant must prove that the injury or disability has prevented them from working in their normal job, for which they have the appropriate skill set and training.

There doesn't have to be another person at fault for a person's injury or illness for TPD claims. A person can still receive benefits even if an illness arose for no apparent reason, as long as it prevents the person from working and earning income.

If an injury or illness also keeps a person from doing regular everyday tasks, like bathing or doing chores around the house, TPD can also help provide assistance in those areas.

What is TTD?

TTD means Total and Temporary Disability, also known as Income Protection. The main difference between this type of claim and TPD is that the person is only temporarily unable to work due to his or her injury or illness, whereas TPD claims are permanent. Usually TTD compensation is provided in monthly payments.

As with TPD, an injured or ill person must provide evidence that he or she cannot work their normal job temporarily. Again, the cause of the disability or sickness is irrelevant and isn't based on whether someone else caused it.

TTD benefits are usually received for a set period of a few years, between two to five. A percentage of your normal salary - to be determined by the policy - is paid each month.

Another way you can make a claim for TTD is if you are still able to work but you cannot perform major duties of the job that would otherwise earn you money - for example, if you have to shorten your hours or take on a limited role and thus have a lower income.

Have you suffered an injury or illness that prevents your from working? To learn more about your superannuation and insurance claim options, contact us today. Gerard Malouf & Partners Compensation, Medical Negligence & Will Dispute Lawyers will help guide you through the claim process.

 

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