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Super fund can cover for permanent injury

31 March 2011

People unable to continue working after suffering a serious injury or illness often don't realise they may be able to claim a benefit through their superannuation fund, according to leading law firm Trilby Misso.

Trilby Misso lawyer Renee Zackeresen said the firm had found many people were unaware they could be entitled to a Total and Permanent Disability (TPD) insurance benefit under a superannuation fund and that the injury or illness did not have to be work related.

Ms Zackeresen said many superannuation funds had a TPD component and depending on the fund, limited TPD insurance cover is provided automatically when an employer pays a contribution on an employee's behalf.

She said Trilby Misso had recently taken on TPD claims and had been overwhelmed after a campaign to make clients aware of the benefit.
"We were surprised how many people were unaware that this financial help was there," Ms Zackeresen said.

"A claim may be made if you are never again able to work in gainful employment in which you are reasonably qualified by education, training or experience as a result of an injury or illness."

Ms Zackeresen said Trilby Misso was currently receiving more than 50 TPD claims a month.

"We try to assist clients make the strongest possible submission to their superannuation fund," she said.

"Each superannuation fund defines TPD with some slight differences so each fund's trust deed and/or insurance policy need to be carefully reviewed to ensure that the criteria of that fund have been met."

Ms Zackeresen said those applying for a TPD claim do not have to formally resign from their employment before making a claim.

"Most funds require that you be absent from your employment for a continual period of at least six months before lodging a claim," she said.

Ms Zackeresen said they are usually no strict time limits when making an initial claim to the superannuation fund, however, some funds do have a one or two year time limit from the date you become ill or injured for making a TPD claim.

"These time frames are usually found in the fund's disclosure statement or trust deed," she said.

"There is a six year time limit for filing documents in the court from the date a fund has first rejected your claim.

"Other conditions include being under the age of 65 years when you ceased employment, that you were a member of a superannuation fund at the time you stopped work and you had TPD insurance when you suffered an illness or an accident.

"Even if the fund has paid out the superannuation element of the benefit, it may still be possible to lodge a TPD claim. This again depends upon your fund."

Ms Zackeresen said the TPD claim process can be quite lengthy and complex so it is important to for claimants to receive good advice and assistance.