If you cannot return to work due to a total and permanent disability (TPD), you may have more financial options than you realise. One often-overlooked aspect is the possibility of making multiple TPD claims in Australia. Let’s explore how this works, why it might be relevant to your situation, and other pathways to maximise your financial safety net.
Understanding Multiple TPD Claims
Many Australians don’t realise that if they’ve had several jobs throughout their career, they might have multiple TPD insurance policies through different superannuation funds. Think of these policies like separate safety nets you’ve built up over your working life. Each one represents a distinct contract, and you have the right to claim against each of them independently.
What makes TPD insurance unique is how it differs from other types of insurance. Unlike income protection insurance, which replaces a portion of your lost income, TPD policies pay out predetermined lump sums. This fundamental difference explains why you can claim on multiple policies without it being considered “double-dipping.”
Why Multiple Claims Are Possible
The reason you can make multiple TPD claims stems from the nature of these insurance contracts. Each policy you’ve maintained, whether through superannuation contributions or premium payments, represents a separate agreement. Just as having multiple bank accounts doesn’t prevent you from accessing each one, having multiple TPD policies means you can potentially claim on each of them.
Consider this example: if you’ve worked three different jobs over your career, each with its own superannuation fund containing TPD insurance, you might have three separate policies. If you become totally and permanently disabled, you could potentially claim against all three policies because you’ve been paying premiums on each one.
Important Considerations Before Making Multiple Claims
Policy Definitions Matter
Each TPD policy might define “total and permanent disability” slightly differently. Some policies use an “any occupation” definition, requiring you to prove you cannot work in any job suited to your education and experience. Others use an “own occupation” definition, only requiring proof you cannot work in your specific profession.
The Timing Strategy
The sequence and timing of your claims can significantly impact their success. When one insurer assesses your claim, they typically arrange their own medical examinations. These create new medical evidence that could potentially affect your other claims. This is why strategic timing becomes crucial.
Medical Evidence Requirements
Your medical evidence needs to satisfy each policy’s specific definition while maintaining consistency across all claims. This requires careful coordination and thorough documentation from your healthcare providers.
Recent Legislative Changes
Recent changes to superannuation law have added new considerations. Superannuation funds must now stop providing insurance on accounts that have been inactive (no contributions) for more than 16 months. However, you can maintain coverage on multiple accounts by explicitly opting in to keep the cover active on these inactive accounts.
Common Challenges and How to Address Them
Policy Interactions
Some newer policies include specific clauses about multiple claims. A thorough review of each policy’s terms becomes crucial before proceeding with claims.
Evidence Consistency
While each claim needs to meet its specific policy requirements, the fundamental story of your disability must remain consistent across all claims. Any significant discrepancies could raise red flags with insurers.
Medical Assessments
Each insurer will typically request their own medical assessments. These assessments create new evidence that could potentially affect your other claims. Professional guidance can help manage this process effectively.
The “Real World” Test
When assessing TPD claims, insurers must consider actual jobs that exist in the real world, not theoretical possibilities. This means they need to evaluate whether you could realistically obtain and maintain employment, considering factors like:
- The availability of jobs that accommodate your limitations
- Whether you could sustain regular employment hours
- If you would require frequent unplanned breaks
- The practical impact of your disability on work performance
Making Your Claims Successful
Gather Comprehensive Documentation
Start by collecting all relevant documentation, including:
- Medical reports and assessments
- Employment history records
- Superannuation statements
- Insurance policy documents
Follow Strategic Timing
Consider the sequence of your claims carefully. Sometimes it’s better to stagger claims rather than submit them simultaneously, allowing you to manage the flow of medical evidence effectively.
Maintain Clear Communication
Keep detailed records of all communications with insurers and maintain consistency in your descriptions of your condition and its impact on your ability to work.
Tax Implications of Multiple TPD Claims
If your TPD payout is made through your superannuation fund, it may be subject to tax when you withdraw the funds. The tax rate depends on your age and the way your benefit is structured. If you receive multiple lump-sum payments, you should seek professional tax advice to ensure you understand any liabilities and potential deductions available to you.
Superannuation-based TPD payments are taxed under the “superannuation lump sum tax” rules. If you’re under the preservation age (usually between 55 and 60, depending on your birth year), a portion of your payout may be taxed at up to 22%. However, if you’ve reached your preservation age, the tax rate may be lower. If your TPD policy is held outside superannuation, the payout is generally tax-free.
What if I Don’t Have Multiple Super Funds?
Even if you don’t have multiple TPD policies, several other compensation pathways may be available:
- Workers’ Compensation: Provides ongoing payments and medical expense coverage for workplace-related disabilities. Can be claimed alongside TPD benefits.
- Public Liability Claims: Available when your disability results from an accident in a public place or on private property. Can cover medical costs, lost earnings, and pain and suffering.
- Motor Vehicle CTP Claims: If your disability is due to a road accident, CTP insurance may provide substantial compensation for medical expenses and lost income.
- Income Protection Insurance: While limited to one policy, can provide up to 75% of your pre-disability income as regular monthly payments during your disability.
- Government Support: Access the NDIS and Disability Support Pension for ongoing financial assistance and essential services support.
- Early Super Release: Your superannuation fund may allow early access to your savings on compassionate grounds or severe financial hardship.
Remember, many of these options can be pursued simultaneously with TPD claims. Our expert Super and TPD Claims Lawyers can help you understand which combinations best suit your situation and how to pursue them effectively.
Frequently asked questions about TPD claims
How long does it take to get TPD compensation?
Based on 2023-2024 data, the industry average for average claim time is 4.2 months. Depending on the insurer, this can range from 3.6 to 6.0 months.
Can I make a TPD claim myself?
Yes, but the process is complex. Engaging our experienced Super and TPD Claims Lawyers can improve your chances by handling paperwork, medical evidence, and insurer negotiations.
How much can I claim?
It depends on your policy. Payouts range from tens of thousands to millions—check your super or insurance policy for details.
We’re Here to Help
Navigating multiple TPD claims can be complex and overwhelming. Our experienced legal team specialises in handling TPD claims and ensuring you receive the full benefits you’re entitled to. We can help by:
- Reviewing Your Policies: We assess each of your TPD insurance policies to understand their definitions, terms, and payout conditions.
- Gathering and Coordinating Medical Evidence: We work with medical professionals to ensure all required reports meet the necessary standards for your claims.
- Strategic Claim Timing: We develop a strategy to submit claims in the most effective order, maximising your chances of approval.
- Managing Insurer Communications: We handle all interactions with insurers, ensuring your case is presented clearly and effectively.
- Appealing Denied Claims: If an insurer rejects your claim, we fight for your rights and appeal unfair decisions.
With our guidance, you won’t have to navigate this challenging process alone. Our expertise ensures that your multiple TPD claims are handled efficiently, increasing the likelihood of a successful outcome.
Conclusion
Making multiple TPD claims isn’t just possible—it’s your right if you’ve maintained multiple policies. These are benefits you’ve paid for through premiums or super contributions, and claiming them is about securing what’s rightfully yours. Strategic timing, strong medical evidence, and expert guidance are key to success.
Don’t hesitate to book a FREE consultation with one of our Parramatta Superannuation Lawyers, Cabramatta Superannuation Lawyers, Brisbane Superannuation (TPD) Claim Lawyers , Perth Superannuation Claims Lawyers , or Adelaide Superannuation Lawyers. Call us now!
