Despite the best workplace health and safety training, policies and practices, workers are injured somewhere in Australia every day. Accidents and incidents occur while workers work or travel to and from their workplaces, during breaks or out in the field.
If you’ve suffered a workplace injury in any of the abovementioned scenarios, you may be eligible to claim workers’ compensation. Should your injury be severe, you might also be eligible for a TPD claim for total and permanent disability.
Making a TPD claim or claiming workers’ compensation can be daunting and confusing, and the following information is general. It should not be solely relied upon, so talk to us at the TPD Helpline for advice about your situation regarding a TPD claim and workers’ compensation.
What is Workers Compensation?
There’s legislation in all Australian states and territories requiring employers to have insurance to cover workers if they’re injured or become ill due to their occupation. Some companies can self-insure; others must obtain insurance from state or territory entities like WorkCover.
In either situation, workers’ compensation is meant to pay the medical expenses and lost income should a worker suffer a work-related injury.
These injuries can include psychological disorders, illnesses or diseases the worker suffers in the workplace or due to their work. Family members can claim a lump sum compensation or quarterly payments for funeral expenses and dependents if the worker dies.
What is Total and Permanent Disability Insurance (TPD)?
While most workplace illnesses and injuries aren’t severe, and most workers fully recover and return to work quickly, the injury or illness sometimes causes permanent damage or impairment. If you have suffered a critical injury, whether it is work-related or not, you may be eligible to make a TPD claim for total and permanent disability.
TPD insurance pays you a lump sum if you’re never likely to be fit enough to work again due to injury or illness. A medical professional must assess you to confirm or deny whether further treatment will help your injuries or if they are never likely to improve.
The Test For a TPD Lump Sum Payout
The test for a TPD claim for a lump sum payout is different and more difficult to satisfy than workers’ compensation claims. The problem is that each company offering permanent disability insurance defines TPD differently. And for eligibility to make a permanent disability claim, every state and territory in Australia has a different percentage or level of impairment needed.
Your policy’s product disclosure statement should contain information on impairment percentages, but to understand your eligibility, you also need advice from a legal professional with experience in TPD claims. Contact the TPD Helpline for TPD information and advice.
The Difference Between a TPD Claim and Workers’ Comp
You need to know the difference between TPD and workers’ compensation statutory benefits so you are fully aware of your eligibility to claim.
Workers compensation benefits and provisions:
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- Compensation through a state or territory program such as WorkCover.
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- Lump sum benefits for workers who can’t work due to work-related injuries or illnesses.
TPD policies provide:
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- Lump sum benefits for workers who can no longer work – whether or not the injury or illness is work-related.
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- A lump-sum payout through an insurance policy is typically part of your superannuation fund.
Claiming Workers’ Compensation and TPD
You can claim workers’ compensation and a TPD lump sum benefit simultaneously if you meet the criteria for making both for an injury or illness. If you are injured, contract a disease or become ill due to your work, and it’s unlikely that you’ll be able to return to work, you should consider both claims.
TPD claims may take a lot longer, but workers’ compensation can provide funds for medical care and expenses. If you have multiple superannuation funds, you may be entitled to make a TPD claim on all of them.
However, be mindful that if you’re receiving income protection payments to cover your lost income, you cannot “double dip” to receive workers’ compensation payments as well. Seek legal advice from the TPD Helpline to avoid such a situation and ensure you receive everything you’re entitled to.
Returning to Work After a Successful TPD Claim
Many believe they cannot return to work after receiving a TPD payout. But that’s not entirely true since a TPD claim doesn’t prevent you from getting a job in the future. For instance, a treatment might be found at some stage in future for an injury that’s now untreatable. Or you might get training in a different field from the one you worked in.
Usually, you wouldn’t have to return your TPD lump sum payment if you returned to work. However, if you’re receiving other TPD benefits, such as workers’ compensation, these could be affected or stopped if you return to work. A legal professional can help you understand your TPD insurance policy rights and obligations.
How Can TPD Helpline Assist You?
There are many steps to a successful TPD lump sum payout or workers’ compensation claim, so seeking professional help is advisable. If you need more information or want to learn more about your rights and obligations when claiming workers’ compensation & TPD, contact us to start the process today.
