Government report sheds light on high-decline rate for TPD claims
Published 27 Oct 2016
A government report has illuminated the number of Australians being declined from total and permanent disability (TPD) claims. The figures are a reminder that claims should be looked over by a specialist superannuation lawyer experienced in making TPD claims.
New report shows high decline rates
Research from the Australian Securities and Investments Commission (ASIC) found that one prominent insurance company was declining more than 1 in 3 TPD claims. Another two life insurers were found to reject 25 per cent of TPD claims, while a fourth declined 24 per cent of the same type of claims.
While the ASIC has not named and shamed the insurance companies, it has offered a warning to the sector that if it does not start cleaning up its claims processes, names will be made public.
ASIC Deputy Chairman Peter Kell argued that the importance of life insurance to Australian families is what drove the report.
“Not being able to successfully claim on a life insurance policy can be financially devastating for the consumer and/or their family, so it’s important that the industry operates in a way that is fair and transparent,” he said.
Majority of claims still going through
The six month investigation reviewed over three years of data, focusing on the four major life insurance policy types:
- Term life cover
- Total and permanent disablement
- Income protection
Alongside the finding that TPD claims had the highest decline rates, the report showed that there were large discrepancies among insurer declined claim rates. The most common type of claim dispute revolved around required evidence and delays.
One of the main findings was that close to 90 per cent of all claims are paid after the first instance. The result was around $8.2 billion in net policy payments in the year ending June 2016.
The finding is a reminder that while some are declined, many others are not. However, due to the high rate, it is important to have experienced superannuation lawyers working on your claim.
With our help, you can rest assured that your claim is in the best hands. If you would like to know more about the options available to you, talk to the experts at Gerard Malouf and Partners Compensation, Medical negligence and Will dispute lawyers.
Our no win no fee guarantee can help you get your claim off the ground, without the need for expensive upfront costs. Contact a representative today.