There is no standard length for the TPD claims process. This can be frustrating for anyone going through it, as it’s difficult to know when they might receive compensation.
However, if you are working with an experienced lawyer, there is a typical timeframe you can roughly base your expectations around.
- With a Lawyer: Most experienced TPD lawyers strive to finalise claims within 6-12 months. Sometimes they are much faster; however, certain factors can also cause delays.
- Self-Managed Claims: Expect significantly longer delays if your claim is self-managed. It will often exceed 12 months due to a lack of resources and skill to push these through the various approval stages. It's unwise to go it alone unless your case is extremely clear-cut.
Also read: What Does TPD Insurance Cover?
Factors that impact TPD claim timeframes
Various factors can complicate the process of getting a claim accepted.
- Policy Definition: Whether you claim under an ‘own occupation’ or ‘any occupation,’ TPD policy definition will influence how complicated the claim assessment becomes. 'Own occupation' tends to be easier to substantiate.
- Medical Evidence: Depending on your illness or injury, gathering appropriate reports from specialists with suitable expertise often becomes a major bottleneck.
- Fund's Responsiveness: Each super fund trustee works within a different internal timeline that varies widely on claims handling. Some have poor reputations for efficiency.
- Disputes: When a complex claim is denied or undervalued, litigation may be the only choice. Court proceedings further slow things down – potentially for years.
Breakdown of typical claim steps with approximate timeframes
Claims follow a particular structured process, and each step in the claim will take a different amount of time.
- Initial Assessment & Lodgment (Lawyer involved): A few weeks to a month where your lawyer works to make sure your claim is robust and you understand the policy definition you're relying on.
- Super Fund Review: Often, it takes 2-6 months on average. Some funds have specific claim turnaround targets, so your lawyer should push using those if known.
- Dispute Stage (if needed): This stage may take months or even a year or two, depending on how your fund handles this level. A lawyer is key here in negotiating, and if necessary, litigation may commence.
- Settlement/Payout: This can be weeks after a clear decision has been approved. If further court steps are required, however, it can drag out many more months. Your lawyer should try to get interim or 'lump sum advance' payments at intervals within the larger claim when situations involve hardship.
Advice for those making a claim
If you are about to make a claim, keep in mind: engaging a legal specialist early on in the piece significantly speeds up the process compared to DIY attempts.
It’s also a good idea to maintain frequent contact with your lawyer for updates and provide any extra material your fund asks for swiftly. This will speed up their processes.
Resources
- Information about TPD and Super: Your own superfund will have details and so does the government's 'Moneysmart' website https://moneysmart.gov.au/
