WorkCover and TPD Insurance: What’s the Difference?

In Australia, there are several types of insurance policies that can help protect workers in case of illness, injury, or death. Two of the most important types of insurance policies for workers specifically in Queensland are WorkCover and Total and Permanent Disability (TPD) insurance. While these policies have some similarities, they are designed to provide different types of protection and are two separate ways of being insured for injuries.

Australians injured at work can get help through WorkCover and TPD insurance

WorkCover in Queensland

WorkCover is an insurance scheme that provides protection for workers who are injured or become ill as a result of their work. In Queensland, WorkCover is Government managed by the Workers’ Compensation Regulator, which is part of the Department of Justice.

Under the WorkCover scheme, workers who are injured on the job or suffer from work-related illnesses (such as asbestos related diseases) can claim benefits such as medical expenses, wage replacement, and rehabilitation services – to help them recover and ideally, get back to work.

According to the latest statistics, in 2020, the most common types of injuries reported were musculoskeletal disorders (57%), followed by wounds, lacerations, and amputations (21%) and psychological disorders (2.5%). When it comes to the industry with the highest number of claims, the healthcare and social assistance sector was on top, with 16% of all claims.

In the 2020-2021 financial year, WorkCover Queensland assisted 62,639 injured workers. The majority of claims (93%) were for injuries, with the remaining 7% being for work-related illnesses. The return to rate of work was 93% – meaning the majority of workers were able to take the compensation they needed, recover and return to their place of work. But what about the other 7%? This is where your superannuation backed TPD insurance may come into effect.

Total and Permanent Disability (TPD) Insurance

Total and Permanent Disability (TPD) insurance provides financial protection to workers who are unable to work due to a permanent health condition. TPD insurance pays a lump sum benefit if the policyholder becomes totally and permanently disabled and is unable to work again in any occupation for which they are reasonably suited by education, training, or experience.

While TPD insurance is included by default as part of most superannuation funds, it can also be purchased separately. TPD insurance payouts can vary depending on a range of factors, including the policyholder’s age, occupation, and health status. It is important to note, usually when you are enrolled into a superannuation fund by an employer, they will automatically turn on the premiums for insurances for TPD. So even if you don’t remember having opted into the insurance, you may still be eligible and paying for these premiums.

WorkCover vs. TPD Insurance: What’s the Difference?

While WorkCover and TPD insurance are both designed to provide financial protection to workers, they are intended to cover different circumstances. WorkCover is designed to provide compensation to workers who are injured or become ill as a result of their work with the goal to return to work, while TPD insurance is designed to provide financial support to workers who are unable to work due to a permanent disability.

Another key difference between WorkCover and TPD insurance is the way they are funded. WorkCover is funded through premiums paid by employers and is Government managed and regulated, while TPD insurance is typically paid for by the policyholder through monthly superannuation fees .

It’s also worth noting that while WorkCover provides coverage for a wide range of work-related injuries and illnesses, TPD insurance typically only provides coverage for total and permanent disabilities – and this will be qualified through criteria.

As you can see from the above, it can be confusing to go it alone – especially when you are injured or permanently disabled. Super Claims Assist can be with you through every step of the way, and help you understand what your rights are. We have a no win, no fee policy and obligation free consultations.

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