Total Permanent Disability (TPD)

Total and Permanent Disability (“TPD”) Insurance is financial protection against the situation where you become sick or injured and are consequently unable to keep working. Most working Australians will be entitled to it through their superannuation fund. It is usually paid as a lump sum, the amount of which will vary depending on the terms of your insurance policy. You may also be eligible to claim a TPD benefit through a private life insurance policy (if you have one).

With this type of insurance, you do not need to show that someone else is at ‘fault’ in order to make a claim for benefits. Some people don’t bother pursuing TPD benefits because they wrongly believe they must prove someone was at fault for their injury or illness. This is not the case. You don’t need to show that your injury or illness was the result of your employer’s, or anyone else’s negligence, nor do you need to prove that you weren’t negligent.

TPD is usually paid as a lump sum payment. The most common grounds for TPD claims include back injuries and mental illness. Typically, you need to prove that you have been unable to carry out work for a minimum of six months before you file your TPD claim.

What a TPD claim typically comes down to is the determination of whether your injury fits within your specific insurance providers’ definition of Total and Permanent Disability. Some insurance providers are making their TPD definitions stricter in an effort to reduce the number of people successfully claiming. In order to determine whether you may be eligible for a TPD claim, and to navigate your way through the complexities of insurance compensation claims, it is always best to seek the advice of a lawyer.