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ARTICLE · 23 AUGUST 2011

The relevance of part time work and TPD claims

The NSW Court of Appeal has delivered an important decision which addresses the relevance of capacity for part-time employment to TPD claims.

AustraliaInsurance

Manglicmot v Commonwealth Bank Officers Superannuation Corporation Pty Limited [2011] NSWCA 204 (27 July 2011)

Member accepted redundancy – member unfit for full-time work but fit for part time work – policy did not provide TPD benefit as member fit for part time work – six months consecutive absence from work not due to injury or illness

Introduction

The NSW Court of Appeal has delivered an important decision which addresses the relevance of capacity for part-time employment to TPD claims.

In a decision which will be welcomed by the life insurance industry, the Court of Appeal has found that a member who is able to engage in suitable part-time work, but not full-time work, is generally precluded from recovering a TPD benefit. In doing so, it dismissed the member's appeal against Justice Rein's decision.

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