01 / The meaning
What it means.
Total and permanent disability insurance, personal accident benefits and workers compensation assessments can use different definitions. Some focus on occupational capacity, while others address specified injuries, impairment or daily activities. A medical diagnosis, inability to perform a particular job and a qualifying insurance definition are therefore not interchangeable. The required evidence and assessment process must be identified.
For a business owner reviewing continuity arrangements, separate the individual’s potential benefits from the company’s operating expenses and key-person dependencies. A payment under one arrangement may not replace ongoing revenue or satisfy another arrangement’s criteria. This glossary explanation is educational and does not state that BAU provides life or personal disability advice; seek an appropriately authorised adviser for those products.
02 / Put it in context
A practical example.
Hypothetical example: A self-employed designer develops a lasting condition that prevents some duties but allows other work. The designer asks the relevant provider which disability definition applies and what evidence is required. The diagnosis alone does not predict whether a benefit is payable.
This example illustrates the term. It does not predict a claim outcome.
03 / Read the detail
What to check.
- Identify the exact policy or scheme and its disability definition.
- Check occupational, impairment or daily-activity assessment criteria.
- Distinguish personal benefits from the business’s continuity funding needs.
04 / Start a useful conversation
A question for your broker.
Which definition of permanent disability applies to this particular arrangement?
05 / Connect the terms
Keep the meaning in context.
06 / Apply it to your business
Related insurance guides.
Further reading
Read the source guidance alongside the relevant policy wording.
General information only. This does not take into account your objectives, financial situation or needs. Before acting, consider whether the information is appropriate for you. Cover is subject to insurer acceptance and the policy terms, conditions, limits and exclusions. Read the Financial Services Guide and the relevant PDS (where applicable) and/or policy wording before deciding.
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