What is income protection insurance?
Income protection insurance policies (salary continuance policies) pay a benefit to policy holders in the event you are not able to do your normal job for a period and therefore lose income. Your disability or illness does not need to be caused by work. Many superannuation policies contain income protection insurance in the form of total and temporary disability (TPD) policy.
The amount of time you will receive payments will depend on the policy. Some polices only cover a defined period say between 2-5 years. Other policies will pay benefits until you are 65 years or older. Most policies will pay a percentage, usually 75% of usual wages or salary excluding overtime, bonuses, penalty rates and other allowances.
You may also be able to claim from your income protection policy if you have had to change jobs or working hours as a result of your illness and have lost money as a result.
There will be a waiting period before you can apply to make a payment. The waiting periods will differ depending on the policy and can be anywhere between 14 to 90 days or longer.
How do I make a claim?
To make a claim for income protection of TTD you will need to complete a form and submit medical evidence.
If you are receiving Centrelink benefits or worker’s compensation benefits then the amount you recover from your income protection or TTD may be reduced. Payments may cease if you are terminated, receive a TPD pay out or a common law lump sum payment.
What happens if my claim is rejected?
If your claim is rejected you have a number of options. Most policies will allow for an internal review. If an internal review rejects your claim then you can make a complaint to the Superannuation Complaints Tribunal or you can bring proceedings against the superannuation fund or insurer in the District Court or Supreme Court.
You can also bring proceedings in the District Court of Supreme Court if the superannuation fund or insurer is taking too long to make a decision in relation to your claim.
Segelov Taylor Lawyers can assist you in completing an application form and obtaining medical evidence to support your claim. If your claim is rejected then Segelov Taylor Lawyers can assist you to challenge the decision by way of an internal or external review and provide advice and act for you in the event court action is required.