Superannuation lump sum compensation claims and income protection

In built into most Superannuation policies is insurance. This insurance is paid for as part of your fees. If you make a claim for the insurance payment, it is a claim for money payable in addition to your accrued earnings. The insurance exists to cover situations where you are incapacitated for employment.

There are three basic types of insurance that most people will have as part of their Superannuation; Income protection, Total and Permanent Disablement Payment and a Death Benefit.

Rubicon Compensation lawyers conducts all Superannuation insurance claims on a No Win No Fee basis with capped fees.

Income Protection

This is a payment when there is a complete or partial incapacity to work due to injury or illness. Ordinarily the payment is a weekly/monthly payment capped at a specified amount. There is no requirement for the injury or illness to be caused by work. Each policy is different however the process of making a claim is relatively straight forward and is ordinarily determined quickly.

If you are in receipt of WorkCover weekly payments, Comcare NWE or loss of earning payments from the TAC then an income protection payment will reduce your weekly payments of compensation.

Total and Permanent Disablement Payment (TPD claim)

This is a lump sum payment payable, ordinarily, in situations where you have lost the ability to perform the inherent tasks of the role which you were qualified for by way of education and/or experience. The payment can be very significant.

In order to make the claim you will ordinarily be required to submit, in prescribed forms, two medical reports indicating that you have no capacity for employment. The claim process can then take a number of months and may involve you attending a medical examination.

The value of your TPD is the insurance cover as at the date that you lost your capacity to work and not the date that you make the claim. The younger you are the higher the value of the TPD insurance. Each year the value of the TPD cover reduces as the likelihood of incapacity increases.

The receipt of a TPD payment does not reduce your WorkCover or TAC weekly payments however it will impact your Comcare NWE. The receipt of a TPD claim will also not reduce any common law damages payment you may receive.

Each definition of TPD is different, depending on the Superannuation fund that you are with and the year that you joined. It is important that a TPD claim is lodged by a lawyer as if the claim is denied, your appeal rights are limited to the material you submitted in the TPD application. Further, it is common for Superannuation files to be subpoenaed in personal injury claims so it is important that what is said in the TPD claim process is entirely consistent with your personal injury claim.

Death Benefit

If you are diagnosed with a terminal illness, an application for your death benefit can be made upon diagnosis and before death. If the policy holder dies, the benefit will be paid to the binding nominee and if a binding nominee has not been identified, then the dependents of the deceased. A payment may also be payable to the executor of the will to be distributed in accordance with the wishes of the deceased as expressed in their will. Each policy is different, and each insurer approaches these situations differently, so it is best to ensure you have identified a binding nominee for your fund to ensure the benefit is released to the person/s you wish to receive the money.