This article is supported by our friends at Slater and Gordon
- Are you a casual worker?
- Do you work less than 15 hours a week?
- Do you drive more than 500 km in any one journey as part of your truck driving role?
- Are you in a ‘special risk’ occupation?
If you answered ‘yes’ to any of these questions and have an injury or become unwell which means you can’t work, you may not be covered for Total and Permanent Disability (“TPD”) default insurance through your superannuation fund.
The ‘standard’ TPD definition which asks whether you have the capacity to ever return to work may not apply. Instead, a more difficult test is applied; one which requires you to prove that you cannot dress, feed or toilet yourself independently on a permanent basis.
This sort of insurance has been referred to as ‘junk insurance’ by the Australian Securities Investment Commission and the Financial Services Royal Commission.
Our client, David, a lifelong truck driver, is unable to work after a serious fall at home caused permanent life changing injuries. You would think he would be able to access his Total and Permanent Disability lump sum, right? David’s TPD claim was declined because his truck driving work was considered to be a special risk / hazardous occupation.
Also consider Mary who is a casual retail worker. Mary suffers from a mental health illness which means she can’t work. Her claim was declined because she can dress, feed or toilet herself independently.
Check your superannuation statements and your insurance policy to see what it says about what you need to show to get a TPD lump sum. You don’t want to be caught paying for insurance you’ll never be able to access.
If you need support with a disability insurance claim, contact Slater & Gordon's dedicated expert team on 1800 840 932.