Superannuation funds are paying up on the majority of total and permanent disablement insurance claims with most claimants receiving either a full or partial payout, and funds that look closely at insurer decisions are among the best payers.
Research from SuperRatings showed nearly half of the super funds assessed paid out between 71 per cent and 90 per cent of TPD claims between July 1, 2015, and June 30, 2016. Almost 30 per cent of claimants had 91 to 100 per cent of their claims paid, Fairfax Media has reported.
SuperRatings did not provide data on claims that were knocked back completely, but its research showed that slightly more than one in 10 claimants received 60 per cent or less of their claim payout.
The Australian Securities and Investments Commission reported in a review that about 16 per cent of TPD claims were rejected.