Lawyers have criticised group life insurance policy terms as inconsistent following contrary judgements in Australian courts.

Earlier this month the NSW Supreme Court confirmed the correct date for assessing the likely return to work date for applicants is six months after leaving due to injury or illness.

However, a previous judgement ruled the correct assessment date is the date an insurer arrived to assess the claim.

TurksLegal financial services partner Alph Edwards has called on insurers to clarify the definition of “permanent disability” in group life insurance policies as a result.

“Currently, the wording in many life insurance and superannuation policies with cover for total and permanent disability is causing a lack of consistency and uncertainty for all involved – courts, insurers and consumers,” he said.

“This decision throws out the challenge for life insurers and superannuation trustees to think about the words they use in their group life policies and to make the necessary changes to make it absolutely crystal clear.”

But Aviva Wealth Protection Products GM Natalie Eckersall says clear and concise documentation is crucial to the life insurer.

“For us it’s a critical point to have clear wording in documents,” she told insuranceNEWS.com.au. “It’s clear in our wording that we will make an assessment at the six-month period.

“Group life wordings are coming into their own, as they come under more scrutiny. There’s a lot of focus in those areas as well as enhanced security.”