Can I return to work after a successful TPD claim?

TPD payout and returning to work: what you need to know

Questions about TPD payouts and returning to work are common concerns for people who have received a total and permanent disablement benefit after injury or illness. It can be difficult to accept the possibility that you may never be able to return to work, particularly if you became injured or unwell at a young age.

Many people who have made a successful TPD insurance claim later ask whether they can return to some form of employment if their health improves, they retrain or a different type of work becomes available.

The answer depends on the wording of your TPD insurance policy, the basis on which your claim was accepted and whether the work you want to do is the same as, similar to or different from the work considered during your claim.

Can I work after a TPD payout?

It is difficult for many to accept the proposition that they will never be able to go back to work after an injury or illness, particularly those who are injured or become ill at a young age. Those who claim TPD benefits after injury or illness often ask us if there are any options to return to work after receiving their TPD payout.

As the insurance benefit amount is generally only paid to you on the basis that you are unlikely or unable to ever return to any suitable employment based on your prior work history, returning to the same or similar work might, in certain circumstances, raise questions about the basis of the original claim. That does not mean returning to work is always impossible. 

However, if you are asking, “Can I work after a TPD payout?” It is important to review your policy and get advice before making any decisions.

Can I retrain after receiving a TPD payout?

In our experience, clients quite often undertake retraining in order to return to some form of gainful employment that fits within their reduced capabilities and circumstances. That poses the question: “Can I retrain after receiving a TPD payout and return to work in a new role?”

In some cases, clients who have previously received a TPD insurance payout may have completed a formal qualification or commenced retraining. Other times, they have received additional or new treatment that significantly improves their condition, which results in them being ready to return to work at some stage. As each application is assessed against different insurance policy provisions and definitions, there is no one-size-fits-all answer.

As a general rule, if an individual’s circumstances have changed since their claim was assessed and granted, they are not necessarily prevented from returning to gainful employment because treatment has improved their illness or injury. Likewise, if they have taken the initiative to retrain into alternative work and their insurance policy definitions allow it, they may be able to return to gainful employment.

Can I work in a different job after a TPD payout?

Receiving a benefit from a successful TPD claim in Australia, should not automatically prevent you from returning to work in an industry or occupation that is new or emerging, where the insurer accepted that your injury or illness prevented you from working in the types of roles for which you have experience or qualifications 

Since the pandemic, we have seen a huge demand for food and grocery pick-up and delivery services. Ride-sharing services like Uber are another form of employment that has become popular and more easily accessible to workers generally. Being able to drive your own vehicle to earn a living in a role where you can set your own schedule, have flexibility and accommodate reduced physical capabilities is something that some people may consider after receiving a TPD payout.

Of course, if you were a delivery or taxi driver prior to making a successful TPD claim, then continuing to work or returning to work in similar roles could create issues in relation to the genuineness or basis of your claim.

Know your TPD insurance policy: own occupation TPD vs. any occupation TPD

It pays to know the basis upon which your TPD claim was accepted due to being totally and permanently disabled. Each insurance policy will have definitions that need to be satisfied in order to receive an insurance benefit. Some policies include an own occupation TPD definition, which relates to the person’s own or most recent occupation.

Alternatively, and more frequently, any occupation TPD definition may apply, which considers whether the person is able to return to work within their education, training or experience.

The latter type of assessment is more general and takes into account the whole of the individual’s work history and transferable skills. ASIC’s Moneysmart explains that TPD insurance can use different definitions, including ‘your own occupation’ or ‘any occupation’, and that the definition affects whether you may be eligible to claim.

What happens if I return to work after a TPD claim?

Whether you return to some form of work after being accepted as totally and permanently disabled by an insurer or superannuation fund trustee is ultimately a matter for you. However, it would be in your best interests to review your policy with regard to:

• Any retraining provisions that may be incorporated into the TPD definition;
• Whether the policy includes any payback or recovery provision;
• The type of work you intend to perform;
• Whether your health has materially improved since the claim was accepted;
• Whether the new work is similar to the work considered during your claim.

Do I have to repay my TPD payout if I return to work?

Whether you may have to repay your TPD payout if you return to work depends on the policy terms, the basis on which your claim was approved and the circumstances of your return to employment. Not every return to work will create a repayment issue. However, returning to similar work, returning shortly after a payout, or returning in circumstances inconsistent with the evidence provided during the claim may create risk.

Before accepting a new role, retraining, starting self-employment or returning to work, it is sensible to seek advice from a TPD lawyer in Australia who can review the policy and help you understand any potential consequences.

Get help from a TPD lawyer

At Hall Payne Lawyers, we assist with a range of disability insurance claims, including TPD, income protection and trauma insurance. We can help you understand the basis on which your claim was accepted so you can make an informed decision about going back to some form of work. If you have not yet commenced your claim, having someone on your side who understands the claims process, the insurer’s obligations and the legal terminology is often the difference between having your claim accepted or rejected by the insurer.

If your claim has been denied, is taking too long, or you have any other concerns in relation to TPD insurance in Australia, income protection or death benefits, get in touch with a member of our superannuation and insurance team.

Contacting Hall Payne Lawyers

You can contact us by phone or email to arrange your consultation, either face-to-face at one of our offices, by telephone, or by videoconference.

If you are asking questions such as “Can I return to work after a TPD payout in Australia?”, “Can I work after receiving a TPD insurance payout?” or “Can I get a job after a successful TPD claim?” Hall Payne Lawyers can help you review your policy and understand your options before you make a decision about TPD payout and returning to work.