For most reaching the end of a Total & Permeant Disability (TPD) Claim marks the finalisation of a long and stressful journey — finally, a sense of relief and financial certainty after months (or years) of uncertainty. But what many don’t realise is that the payment they receive is not always the full amount they may be entitled to.
Insurer’s will rarely offer you this.
For some, the claims process and assessment period can be significantly drawn out, and payment of TPD benefits can be unreasonably delayed. In these circumstances, you may be entitled to a further payment on the interest on top of your TPD benefit.
The rule almost no insurer mentions
Under s 57 of the Insurance Contracts Act 1984, where the insurer is liable to pay a benefit under the policy, they may also be liable to pay interest in addition. Interest becomes payable from that date that the insurer begins to unreasonably withhold payment of the benefit and runs until the date the benefit is paid.
