Being unable to work due to an illness or injury puts a huge strain on your finances. It can be impossible to keep your household running without that income.
If an illness or injury is preventing you from working for three months or longer, you might be entitled to compensation through a Total and Permanent Disability (TPD) claim.
What is a TPD claim?
A TPD claim, when successful, provides a lump-sum payment following an injury or illness that prevents you from returning to work. It is generally paid through your superannuation.
Almost every working Australian joins a superannuation fund when starting a job, and most funds offer TPD cover. You may also be able to make a claim through private life insurance depending on your policy.
The amount paid in a successful TPD claim differs between each individual. Factors including the severity of your injury or illness will affect the amount you receive as a lump sum. This lump sum is intended to cover expenses such as medical bills and loss of income.
Who is eligible to claim compensation for TPD?
To be eligible to make a claim for TPD compensation, you need to prove that your illness or injury has stopped you from working and being able to continue working in your job or any other occupation that you are reasonably suited to. You will need to provide medical evidence to support your claim.
Types of disabilities that may be covered by TPD include:
- Hearing loss
- Loss of sight
- Some mental health disorders
- Speech impairment.
You are not required to prove that someone else is at fault for your injury or illness. You just need to show that your injury or illness is serious enough to affect your ability to work.
How long does a TPD claim take?
This can change depending on your individual circumstances. Generally, a TPD claim will take around 1-3 months. You can get in touch with a professional compensation lawyer to get an idea of a realistic timeframe.
How to make a TPD compensation claim
Through your superannuation:
- Get in touch with your super fund to obtain the required claim documentation. You will need to provide identification, existing medical reports and medical documentation that supports your claim. Once filled in and signed, you can submit your claim.
- A case manager will be assigned to you to provide support throughout your claim process, making sure all paperwork is received.
- Your case manager will determine whether you are entitled to TPD compensation. They will also generally contact your employer for a written statement describing why you stopped working.
- An insurance provider will examine your paperwork to determine whether further evidence is required, such as medical reports or more information from your employer.
- An insurance provider will assess the claim again. If it has been accepted, you will be contacted to discuss the payment options. If it has been deferred, the insurance provider will continue to assess your case. If it is denied, you will be informed.
Through a separate insurance policy:
- Get in touch with the insurer’s claims team to obtain the required claim documentation. You may receive assistance to fill out the forms by your financial adviser.
- Prepare your documentation, including the claim paperwork, medical records, and bank details of your nominated account. Then submit your claim to your insurance provider.
If a serious illness or injury is preventing your ability to earn an income, you may be eligible to make a TPD claim.