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Reasons For Rejected TPD Insurance Claims

Life Matters Claims
Reasons For Rejected TPD Insurance Claims

There are many benefits to buying TPD insurance. However, it's essential to know the downsides before you commit. It can be difficult and frustrating if you're rejected for an insurance claim. Life Matters Claims prides itself in helping you access the compensation you deserve.

There are many reasons why your insurer may reject a TPD insurance claim. To help you understand the process, we've compiled a list of the most common reasons insurers reject a TPD claim.

Most Common Reasons For Rejected Insurance Claims

1. The claim is a death claim

A lot of time, insurers will reject a TPD insurance claim. It's pretty simple if it's not a death claim, the insurer knows it doesn't have to pay out. The problem with this reason for rejection is that many people don't realize that the definition of 'death' in the event of TPD insurance is very different from how many people define death. You're not dead if you've lost your contact lens or dropped an item on your foot. Therefore, your TPD insurance claim shouldn't be treated as a death claim. If you're experiencing these issues, call us to help you get some of the money you deserve.

2. The insurer has established an exclusion clause

It is a big problem for many who have taken out TPD insurance. Many people need to realize that when they take out TPD insurance, they are essentially waiving your right to sue their insurer if they refuse to pay you money that's owed to them. The reasons why they do this include, but are not limited to, the following:

  • You have a pre-existing medical condition that wasn't disclosed at the time of taking out the insurance
  • The claim occurred soon after you took out the insurance policy, indicating that you were never in financial trouble. It is sometimes known as event underwriting. People often don't realize just how long it can take for a TPD insurance claim to be paid out. Most TPD claims can take anywhere between 3-9 months on average.
  • There are many exclusions, such as specific incidents, activities, or events. The most common exclusions are those that relate to your job. If you were injured while doing a particular activity in your job, the insurer might provide additional compensation.

3. The insurer refuses to pay out after giving you a partial payout

It is essential always to keep some of your potential payouts aside. This money can be used to help you out in any way that you choose. Insurers will sometimes pay out part of the compensation they owe you, yet they will only agree to pay some of it. Sometimes, an insurer will pay out a percentage of what they owe and then refuse to pay anything else.

4. The insurer refuses to pay out because of their lack of grounds

If you have a policy subject to the Australian Consumer Law (ACL), it is difficult for an insurer to reject your claim. However, in other cases, it is more complex. If you have an ACL policy, some elements are considered as 'conditions precedent. If any of these conditions are broken by the insurer, they can be held liable for compensating you.


Knowing why your insurer might reject your TPD insurance claim is essential. That will help you to be better prepared for when it does happen. You'll also have a clearer picture of what steps you need to take next to get the compensation you deserve.

If you're struggling with your insurer, Life Matters Claims can help. We're here to ensure you get the best possible outcome for your TPD claim. Contact us today at https://lifemattersclaims.com.au/free-consultation.

Life Matters Claims
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