Farm Insurance Australia :: News
SHARE

Share this news item!

AFCA Orders AIA to Pay Truck Driver's TPD Benefit After 10-Year Dispute

AFCA Orders AIA to Pay Truck Driver's TPD Benefit After 10-Year Dispute

AFCA Orders AIA to Pay Truck Driver's TPD Benefit After 10-Year Dispute?w=400
In a significant ruling by the Australian Financial Complaints Authority (AFCA), insurance provider AIA has been directed to pay a total and permanent disability (TPD) benefit to a truck driver, concluding a protracted dispute that spanned over a decade.

The case centers around a truck driver who sustained a spinal neck injury in 2013, leading to the termination of his employment in January 2015. In 2017, he lodged a TPD claim through his superannuation fund. AIA denied the claim, contending that medical evidence suggested the driver could undertake other commercial driving roles, such as bus or light delivery jobs, aligned with his education, training, and experience.

However, AFCA's assessment found that the driver, now 59 years old and unemployed for ten years, had no realistic capacity for alternative employment. The authority noted that many medical reports did not adequately consider the relevant TPD definition or were obtained for purposes other than the TPD claim. A pivotal report indicated that while the driver could work, the extensive restrictions made it unlikely for him to secure another role.

AFCA's determination stated: "There is no persuasive evidence that there was a real prospect, and not merely some theoretical prospect, that suitable work would be available." Consequently, AIA has been ordered to pay the TPD benefit along with interest from 2020, marking the period from which it was deemed unreasonable to withhold payment.

This ruling underscores the critical importance of thorough and fair assessments in TPD claims, especially for individuals in physically demanding professions like trucking. It highlights the necessity for insurers to consider the practical employability of claimants, taking into account their age, work history, and the realistic availability of suitable employment opportunities.

For professionals in the transport and logistics industry, this case serves as a reminder of the complexities involved in TPD claims and the importance of seeking expert advice when navigating such processes. Ensuring comprehensive documentation and understanding the specific definitions and criteria set forth by insurers can significantly impact the outcome of a claim.

In conclusion, the AFCA's decision reinforces the obligation of insurers to conduct fair and realistic evaluations of TPD claims, ensuring that individuals who are genuinely unable to return to work receive the support they are entitled to.

Published:Friday, 26th Sep 2025
Source: Paige Estritori

Share this news item:

Insurance News

Insuregroup Highlights Elevated Risks in Expanding Truck Fleets
Insuregroup Highlights Elevated Risks in Expanding Truck Fleets
27 Sep 2025: Paige Estritori
Stirling Sanderson, Managing Director at Insuregroup, has raised concerns about the increased risks associated with larger truck fleets. He notes that crash rates tend to rise more quickly as trucking operations expand, a trend evident in recent industry data. - read more
IAG Confirms Minimal Fire Risk in EVs, Advocates for Fleet Electrification
IAG Confirms Minimal Fire Risk in EVs, Advocates for Fleet Electrification
27 Sep 2025: Paige Estritori
Shawn Ticehurst, Head of the IAG Research Centre, has addressed prevalent concerns regarding the fire risks associated with electric vehicles (EVs). Speaking at the Smart Energy Expo in Sydney, Ticehurst stated that the risk of EV battery fires is 'effectively zero' when systems are properly installed and undamaged. - read more
ASIC Initiates Legal Action Against RACQ Insurance Over Misleading Premium Comparisons
ASIC Initiates Legal Action Against RACQ Insurance Over Misleading Premium Comparisons
27 Sep 2025: Paige Estritori
The Australian Securities and Investments Commission (ASIC) has commenced Federal Court proceedings against RACQ Insurance, a subsidiary of Insurance Australia Group (IAG), alleging that the insurer misled more than 570,000 customers through deceptive premium comparison figures in renewal notices issued between September 2019 and December 2024. - read more
ICA Seeks Interstate Tradespeople to Support Cyclone Alfred Recovery Efforts
ICA Seeks Interstate Tradespeople to Support Cyclone Alfred Recovery Efforts
27 Sep 2025: Paige Estritori
In the aftermath of Ex-Tropical Cyclone Alfred, which caused significant flooding in southeast Queensland and northern New South Wales, the Insurance Council of Australia (ICA) has launched an initiative to recruit tradespeople from across Australia and New Zealand to assist in the rebuilding efforts. - read more
MTAA Raises Concerns Over IAG's Acquisition of RAC Insurance and Its Impact on Market Competition
MTAA Raises Concerns Over IAG's Acquisition of RAC Insurance and Its Impact on Market Competition
27 Sep 2025: Paige Estritori
The Motor Trades Association of Australia (MTAA) has voiced concerns regarding Insurance Australia Group's (IAG) proposed acquisition of RAC Insurance in Western Australia, warning that the deal could further consolidate the insurance market and reduce competition. - read more
Envest Group Unveils TLI Underwriting to Serve Heavy Motor Fleets
Envest Group Unveils TLI Underwriting to Serve Heavy Motor Fleets
26 Sep 2025: Paige Estritori
Envest Group, a prominent player in the Australian insurance sector, has announced the launch of TLI Underwriting, a new agency dedicated to providing specialized insurance solutions for heavy motor fleet operators. This strategic move aims to address the unique challenges faced by larger transport businesses in Australia. - read more
Victorian Truck Driver Ordered to Repay $75K in Compensation Fraud Case
Victorian Truck Driver Ordered to Repay $75K in Compensation Fraud Case
26 Sep 2025: Paige Estritori
In a recent case highlighting the importance of integrity in workers' compensation claims, a Victorian truck driver has been convicted for fraudulently obtaining over $75,000 in compensation payments while simultaneously working for other employers. - read more
AFCA Orders AIA to Pay Truck Driver's TPD Benefit After 10-Year Dispute
AFCA Orders AIA to Pay Truck Driver's TPD Benefit After 10-Year Dispute
26 Sep 2025: Paige Estritori
In a significant ruling by the Australian Financial Complaints Authority (AFCA), insurance provider AIA has been directed to pay a total and permanent disability (TPD) benefit to a truck driver, concluding a protracted dispute that spanned over a decade. - read more
Diversification Drives New Insurance Needs for Australia's Small Farms
Diversification Drives New Insurance Needs for Australia's Small Farms
26 Sep 2025: Paige Estritori
In the evolving landscape of Australian agriculture, small commercial farms are increasingly diversifying their operations to enhance income and sustainability. This shift, while offering economic benefits, introduces new complexities in risk management and insurance coverage, presenting both challenges and opportunities for insurance brokers. - read more
Satellite Technology Revolutionizes Crop Insurance for Australian Farmers
Satellite Technology Revolutionizes Crop Insurance for Australian Farmers
26 Sep 2025: Paige Estritori
In a significant advancement for Australian agriculture, Insurance Facilitators (IF), a family-owned underwriting agency, has introduced a data-driven crop insurance solution leveraging satellite technology. This innovative approach aims to address longstanding challenges in the industry, including premium leakage and risk accumulation, by providing more accurate and efficient risk assessments. - read more


Farm Insurance Articles

From Droughts to Floods: Understanding Weather-Related Coverage in Farm Insurance
From Droughts to Floods: Understanding Weather-Related Coverage in Farm Insurance
Australian farmers face a unique set of challenges due to the vast and varied climate conditions that sweep across the continent. From the scorching heat and prolonged droughts of the Outback to the tropical storms and torrential rains of the northern regions, weather-related risks are an integral part of agricultural life in Australia. - read more
What Australian Farmers Should Know About Crop Insurance
What Australian Farmers Should Know About Crop Insurance
Crop insurance is a type of insurance policy designed to protect farmers from the financial losses that arise from damages to their crops. This could be due to various risks, including adverse weather conditions, pests, and diseases. - read more
Agroforestry Insurance Guide: Protecting Your Investment in Australia's Sustainable Future
Agroforestry Insurance Guide: Protecting Your Investment in Australia's Sustainable Future
Agroforestry is a transformative approach to land management that integrates trees into agricultural landscapes. In Australia, where farmers contend with variable climates and environmental challenges, agroforestry offers a resilient pathway to productivity and sustainability. - read more
How to Safeguard Your Farm: A Guide for Australian Farmers
How to Safeguard Your Farm: A Guide for Australian Farmers
Farming is inherently risky. With factors like weather, pests, and market fluctuations affecting crops, it's crucial to manage these risks effectively. - read more
Farm Liability Insurance Costs vs. Benefits: Is It Worth It?
Farm Liability Insurance Costs vs. Benefits: Is It Worth It?
Farm liability insurance is a type of coverage that protects farmers from financial losses due to legal claims and lawsuits. This insurance is crucial for safeguarding your farm against various liabilities that may arise from farm operations. - read more
Customized Insurance Solutions: The Advantage of Specialized Farm Brokers
Customized Insurance Solutions: The Advantage of Specialized Farm Brokers
Farming in Australia is more than just a way of life; it is a critical sector that supports the nation’s economy and food supply. However, managing a farm comes with its own set of unique risks. From natural disasters to equipment failures, farmers face numerous challenges that can impact their livelihood. - read more
Proven Strategies for Australian Farmers to Reduce Farm Insurance Premiums
Proven Strategies for Australian Farmers to Reduce Farm Insurance Premiums
Welcome to our comprehensive guide on navigating the complexities of farm insurance for Australian farmers. As an integral part of the agricultural industry, insurance provides a safety net that helps secure the livelihood of farmers against unpredictable events that can lead to financial hardship. From property damage due to natural disasters to loss of livestock or crops, having adequate farm insurance can make all the difference in keeping a farming operation afloat in times of crisis. - read more
Insurance for Hobby Farms: Finding the Right Coverage
Insurance for Hobby Farms: Finding the Right Coverage
Hobby farming has become increasingly popular in Australia, with many individuals and families embracing the joys of growing their own produce, raising livestock, and enjoying a rural lifestyle. Whether it's a small vegetable garden, a few chickens, or a larger mixed farming operation, hobby farms offer both relaxation and a connection to nature. - read more
5 Essential Farm Insurance Policies Every Australian Farmer Needs
5 Essential Farm Insurance Policies Every Australian Farmer Needs
Farming in Australia is not just a job, it's a way of life. However, it’s also a livelihood that comes with its own unique set of risks. From unexpected weather events to machinery breakdowns, the life of an Australian farmer is fraught with uncertainties. - read more
Tractors, Livestock, and Crops: Tailoring Your Farm Insurance to Fit Your Needs
Tractors, Livestock, and Crops: Tailoring Your Farm Insurance to Fit Your Needs
Welcome to the world of farming, where the fruits of your labor are as tangible as the soil you till. But just as the land is subject to the whims of nature, so too is the business of agriculture. This is where farm insurance becomes essential. Farmers face a set of challenges and uncertainties unlike any other industry, primarily due to the unpredictable forces of weather. - read more


Need a Quote?
Start your free farm insurance quote comparison here.
Farm Type:
Postcode:
All quotes are provided free and without obligation. We respect your privacy.

Knowledgebase
Insurance:
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of potential financial loss.