Your TPD claim is taking too long
Many Australians may not know that if your insurer is taking too long to make a decision on your TPD claim, or if your TPD claim has been rejected, the Courts may be able to help you. Our Superannuation lawyer, Adam Tayler explained what is considered too long for a TPD claim decision in his previous article.
How can the Courts help
In Australia, there are no time limits super funds or insurers must make their decisions by, so it is not unusual for some claims to take in excess of one year. This is when court proceedings can be helpful. Since there are specific court rules that apply to all claims and penalise parties who do not comply with these rules. Courts also have the power to enforce super funds to negotiate and try to resolve the issues with the claimant prior to going to court.
Some people may seem reluctant to start Court proceedings because they need to involve solicitors and these solicitors will have to act for you in court. In TPD claims if you win, the insurer or super fund will have to pay some of your costs. In the majority of circumstances they are usually required to pay at least half at a minimum. In some cases, if your lawyers run the claim efficiently and tactically smart, the super fund may end up having to pay 90% or more of your costs. The costs burden is well worth it to get some control back and to maximise your chances of succeeding.
Example of a TPD claim
For example where the TPD benefit is $150,000, if you issue court proceedings which go to judgement and you win, the Court will award the payment of damages to you of at least $150,000 plus interest of approximately $12,750 (assuming the case is finalised within 9 months). You would also recover some costs from the other side. If you make a formal offer under the Rules to settle your claim for $142,500 plus costs which is rejected you would beat that offer in Court and recover indemnity costs. This usually means between 90-100% of your actual costs.
Limitations of Tribunal or Ombudsman complaints
It is worth noting that in Tribunal or Ombudsman complaints there is no power for you to be awarded interest or costs.
Turner Freeman Lawyers Superannuation and TDP claims
If you have been waiting for longer than 3-6 months for your TDP claim decision, or your TPD claim has been rejected, contact us on 13 43 63 or via online to see how we can help you.