It was recently confirmed that Westpac subsidiary BT Financial Group has the highest total and permanent disability (TPD) refusal rate in the life insurance industry. This revelation comes on the heels of a major investigation into the life insurance sector and the fairness of its practices.
The high refusal rate of Westpac's BT
The Australian reports that after Westpac's life insurance department was revealed to have the highest TPD refusal rate, all 141 of their TPD claims refused over the past three years are being sent to a legal team for review.
The Sydney Morning Herald writes that the BT Financial Group (BTFG) has now released a public statement admitting to the TPD rejection rate of 37 per cent that was outed by a corporate watchdog. Furthermore, they are alleged to have declined one in every three TPD claims made by clients.
The life insurance sector in general was already being intensely criticised after CommonInsure was revealed to have delayed and denied legitimate claims, according to the Sydney Morning Herald. The BT case only highlights that this is an industry wide problem.
BT has defended themselves, however, saying that being named as the insurer with the highest TPD denial rate is unwarranted because the definitions of TPD that different companies use vary. The Financial Services Council is currently investigating this problem.
Still, this systematic problem does not take away from the fact that a number of workers have suffered from not being able to access their superannuation funds. The Australian gives the example of one worker who worked as a Parks Victoria ranger. His back was broken when he was hit by a truck driven by a coworker, and he is still trying to get $64,000 worth of TPD compensation under the AIA policy held by a BT super fund.
He has been trying to get a job in the mean time, but employers are hesitant to hire him because of his back.
Get legal advice on making a claim
At Gerard Malouf and Partners, we know the ways that insurance companies try to sidestep giving you the full compensation you deserve.
We have over 20 years of experience in this area of law and will work on your behalf on a no-win, no-fee basis. Filing for a superannuation TPD claim requires detailed and careful analysis of your policy. Please contact us today for a consultation either over the phone or in person to get some of the best TPD legal advice available.