For many people in New South Wales, superannuation is just retirement savings, but it also includes important insurance cover. One of the most valuable types of cover is Total and Permanent Disability (TPD) insurance, which provides a lump sum payment if you can no longer work due to illness or injury.
What often comes as a surprise is that you might have more than one superannuation account, and more than one TPD policy.
What is TPD Insurance?
Total and Permanent Disability (TPD) insurance is designed to provide financial support if you are no longer able to work because of illness or injury. It usually pays out as a one-off lump sum also known as TPD payout. This can be used at your discretion to, for example, replace lost income, cover household bills, pay for medical treatment, or fund future care needs.
In most cases, TPD insurance is automatically included in your superannuation account, however it is always a good idea to check your policy to find out whether or not you have TPD insurance as well as eligibility requirements and the amounts covered. Each super fund has its own rules about what “total and permanent disability” means. For example:
- Some policies will pay if you cannot return to your own occupation (the job you were doing when you became unwell or injured).
Others require that you cannot perform any occupation that you are reasonably suited to by your skills, training, or experience.
Because the definitions differ between funds, it is possible to be eligible for a TPD claim from one policy but not from another.
Can You Claim TPD From More Than One Fund?
Despite recent changes in the superannuation industry, it’s common for people to have multiple super funds after moving between jobs or industries. According to the ATO, around 4 million Australians have two or more super fund accounts.
Each TPD policy associated with your super fund, is a separate insurance contract. If you held more than one fund with active cover when you became disabled and you meet the requirements, you can make a TPD claim on each policy.
This can be extremely valuable. Living costs, medical bills, and rehabilitation expenses can add up quickly. A second or third TPD payment may provide vital support, particularly where workers’ compensation or motor accident benefits don’t fully cover your financial losses.
To succeed, you’ll need to:
- Show your cover was active in each fund when you stopped working.
- Provide medical evidence supporting your inability to return to work.
- Satisfy the specific definition of TPD in each policy.
- Meet any waiting periods or exclusions that apply.
Worth noting that eligibility criteria vary greatly between funds. For example, some covers exclude claims for pre-existing conditions or mental health conditions,so it is crucial to carefully review each policy individually before making a claim.
Practical Steps if You Have Multiple TPD Policies
If you believe you may have more than one claim, here’s what to do:
- Identify all your super funds – check your ATO online account or request statements.
- Confirm insurance cover – ensure TPD cover was active on the date you stopped working.
- Review the policy wording – note whether it uses an “own occupation” or “any occupation” test.
- Gather medical evidence – ask your doctors to prepare reports that address your ability to work.
- Seek legal advice early – an experienced and specialist TPD lawyer can help you prepare and lodge multiple claims and ensure you don’t miss important entitlements under other NSW compensation schemes.
While it is possible to claim TPD from more than one superannuation fund in NSW, these claims can be complex and sometimes be rejected by the insurers.
At Law Advice, we specialise in helping people across NSW with superannuation and insurance claims. If you can no longer work because of injury or illness, we can help you understand your rights, manage your TPD claims, and make sure you maximise your chances of success.