Can You File Multiple TPD Claims? Everything You Need to Know

Filing a Total and Permanent Disability (TPD) claim can be a life-changing event, offering vital financial relief to individuals who can no longer work due to illness or injury.

But what happens if your circumstances change, or you have multiple insurance policies? Is it possible to lodge multiple TPD claims in Queensland? This article explores the key legal considerations, common scenarios, and how the rules work under Queensland law.

Understanding TPD Insurance in Queensland

TPD insurance is commonly included in superannuation funds or held as a standalone policy. It pays out a lump sum if you're deemed totally and permanently disabled and unable to return to your usual occupation or any occupation for which you're suited based on your education, training, and experience.

Each TPD policy will have its own definition of total and permanent disability, and these definitions can differ substantially. Understanding the criteria in each policy is essential, especially when considering multiple claims.

Can You Make Multiple TPD Claims?

Yes, under certain conditions, it is possible to make multiple TPD claims. The key factor is whether you have more than one TPD policy. Each policy is treated as a separate contract, and if you meet the eligibility requirements in each, you may be entitled to a payout from more than one insurer.

For instance, if you hold TPD cover in three different superannuation funds or have a mix of superannuation-based and standalone TPD policies, you can potentially make a claim under each. However, success depends on meeting the unique conditions outlined in each policy.

Legal Considerations for Multiple TPD Claims

There are no laws in Queensland that prohibit an individual from making multiple TPD claims. However, there are important legal and procedural considerations to keep in mind:

1. Policy Definitions and Eligibility Criteria

Each insurer will have its own TPD eligibility rules. These rules determine whether your specific disability meets the definition required for a claim. Some policies are more restrictive than others. For example, one policy may define TPD as being unable to return to your previous job, while another may require that you're unable to return to any job for which you're qualified.

2. Timing and Waiting Periods

Most policies require a waiting period (typically three to six months) before you can lodge a claim. If you're making repeat disability claims, the timing of when you became disabled and how long you’ve been out of work will be scrutinised.

3. Disclosure Obligations

Full disclosure is crucial when making any insurance claim. If you’ve already lodged a TPD claim with another insurer, you must disclose this in your subsequent applications. Failing to do so could be considered insurance fraud and may lead to the denial of your claim.

4. Offsets and Benefit Reductions

While you can lodge multiple claims, some policies include offset clauses that allow insurers to reduce your payout if you’ve received benefits from other sources. These provisions vary from policy to policy, so it’s essential to understand how each interacts with the others.

Common Scenarios Involving Multiple TPD Claims

Let’s consider some real-world situations where multiple TPD claims might arise:

Scenario 1: Multiple Superannuation Funds

You’ve worked for several employers over the years, each contributing to a different superannuation fund with its own TPD policy. If you become permanently disabled, you may be able to claim under each policy, provided you meet their individual criteria.

Scenario 2: Superannuation and Standalone TPD Policy

In addition to your super fund’s default TPD insurance, you also purchased a standalone TPD policy for added protection. Both policies have different definitions and requirements. You could lodge claims under both, assuming your condition satisfies each policy’s definition.

Scenario 3: Worsening or New Disability

You’ve already received a TPD payout for a condition that left you unable to work in your previous occupation. Years later, a new, unrelated disability arises that further limits your functional capacity. Depending on your policy terms and insurer interpretation, you may be eligible to make a new claim based on the new disability.

What Happens After a Successful TPD Claim?

Once your TPD claim is approved and paid, some super funds may close your account or cancel any remaining insurance cover linked to that fund. This could impact your ability to make future claims under the same policy. Therefore, understanding the long-term consequences of each claim is vital.

Also, receiving a TPD payout can affect your Centrelink entitlements and tax obligations. Although TPD payments from super funds are generally tax-free if you're over preservation age and permanently retired, different rules apply if you're under that age or receiving benefits through a non-super policy.

How to Strengthen Your Claim(s)

Making multiple TPD claims can be a complex and paperwork-heavy process. To improve your chances of success:

Engage a specialist lawyer: A legal professional familiar with Queensland’s insurance and superannuation laws can guide you through each step.
Gather strong medical evidence: Your claim hinges on demonstrating that you meet the definition of TPD under each policy. Comprehensive medical reports are essential.
Understand your policy: Read and understand the fine print. Each policy has nuances that could affect the outcome of your claim.
Stay consistent and truthful: Discrepancies in your claims or medical records can lead to denials. Ensure all your documentation aligns across claims.

Seeking Professional Legal Advice

Because of the complex interplay between different insurers, policy definitions, and Queensland law, it’s highly recommended that you seek legal advice before proceeding with multiple TPD claims. A lawyer can help interpret your policy wording, assess your eligibility, and handle the submission process professionally.

At Sarinas Legal's TPD Lawyers in Townsville, we specialise in helping Queenslanders secure their rightful entitlements under TPD insurance. Whether you’re lodging your first claim or considering a repeat application, we provide expert guidance tailored to your unique circumstances.

Final Thoughts

Filing multiple TPD claims is legally permissible and sometimes necessary, particularly when an individual has coverage under more than one insurance policy. However, navigating the process demands a thorough understanding of TPD eligibility rules, potential repeat disability claims, and the fine print of each policy.

To avoid unnecessary delays or denials, consult with legal experts who understand the landscape of disability claims in Queensland.

Need Help with a TPD Claim? Contact Sarinas Legal Today

Whether you’re exploring your first TPD application or wondering if you can make a second or third claim, our experienced TPD lawyers are here to help. Contact Sarinas Legal for a confidential consultation and get the guidance you need to secure your financial future.