You may be one of 12 million Australian workers paying for Total and Permanent Disability (TPD) insurance through your super. Unfortunately, nearly half a million Australian workers pay for ‘junk’ TPD policies through their super known as ADL cover. ADL cover is only paid to those in “the most catastrophic circumstances”.

While general TPD insurance is paid when you are unable to work, ADL or ‘Activities of Daily Living’ cover is only paid when you can’t complete daily activities such as eating, dressing or washing.

Why is ADL ‘Junk’ insurance?

When paying for a narrow ADL insurance cover you would expect an easier and greater payout then general TPD. Despite this, ASIC’s review of 35,000 claims found that 60% of people were unsuccessful in their ADL claim. This is a 5 times higher failure rate than the general TPD insurance average of 12%.

Foul Play causes failure in TPD claims

If you have General TPD cover you’ll have a 5 times higher claim rate over those with junk ADL cover. Your success rate could be higher again without the presence of foul play. ASIC found applicants experienced “difficult lodgement processes, poor communication practices, multiple requests for medical assessments, and excessive delays,” making it hard for workers to get financial help when they needed it the most. As a result, 12% of claims were withdrawn or otherwise did not proceed to a decision.

Further ASIC research found that factors such as the consumer’s age and the underlying TPD condition, have significantly different likelihoods of a claim being declined—unfairly affecting some consumers. Proof of this discrimination is a 16.9% decline rate for mental illness-related claims.

At Splatt Lawyers, we understand the distressing situation you are in. We believe you deserve fair treatment especially in this time of need. For this reason, we provide a no-win, no-fee service to ensure you are treated properly. To date, we have helped 1000’s of Queenslanders get the most out of TPD claims. This includes over 100 customers who possessed mental related-illnesses or were unable to complete ‘Activities of Daily Living’ (ADL). Call us today so we can help your claim succeed at 1800 700 125 or click here for more information on our TPD services.

Claiming TPD Through Your Super?

Find out your rights. Contact us today for a free case assessment.

Splatt Lawyers. TPD Claim Experts.
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