If you are unable to work again because of injury or illness, a total and permanent disability (TPD) benefit through your super can be important. Many people pursue these claims with a lawyer under a ‘no win, no fee’ arrangement, which can reduce upfront cost but does not make the process entirely free.

Disputes are common. APRA and ASIC data released on 29 April 2026 showed that TPD and disability income insurance made up 88% of life insurance claim disputes across 2025. It also showed TPD admittance of 82% for advised individual policies and 69% for non-advised policies. This article explains what ‘no win, no fee’ usually covers, what you might still pay, and how the rules protect you.

What ‘no win, no fee’ actually means in Australia

In legal terms, ‘no win, no fee’ usually describes a conditional costs agreement. Your lawyer agrees not to charge professional fees unless your claim reaches a successful outcome, as defined in the agreement.

Under the Legal Profession Uniform Law (LPUL), which applies in states including New South Wales and Victoria, these agreements must be written, signed by the client, and state what counts as a ‘successful outcome’. You also get a cooling-off period of at least five clear business days. Conditional costs agreements cannot be used for criminal or family law matters, but TPD claims fall outside those exclusions.

Uplift fees versus contingency fees

An uplift fee is an extra percentage a law practice may add to professional costs for taking the risk of not being paid if the claim fails. Under LPUL, in litigious matters, any uplift must not exceed 25% of professional costs, excluding disbursements. If an agreement breaches these rules, the practice cannot recover the uplift and must repay any amount already received.

A contingency fee is different. It is calculated as a percentage of the amount you recover. These fees are prohibited under LPUL, apart from limited, court-approved class actions in Victoria. Queensland’s costs rules apply similar principles, and you can also be required to pay the other side’s legal costs there. In short, a lawyer can charge for time and add a capped uplift, but cannot simply take a slice of your payout.

What you might still pay

‘No win, no fee’ applies to your lawyer’s professional fees. Other costs can sit outside that promise.

• Disbursements: Out-of-pocket expenses such as court filing fees and expert reports. These may still be payable and should be estimated.
• Adverse costs: If litigation fails, you may be ordered to pay part of the other party’s legal costs.
• Litigation funding: A third party may fund disbursements, with its own terms and charges.

Understand the gap between ‘party and party’ costs and ‘solicitor and client’ costs. Party and party costs are the portion one side may recover from the other. Solicitor and client costs are the full amount you agreed to pay your own lawyer, so a favourable result can still leave a gap. For one commercial comparison, you might review a TPD claim no win no fee arrangement that discusses professional fees, uplift fees and disbursements, without treating it as a recommendation.

TPD basics, so the fees make sense

TPD insurance pays a lump sum if you become totally and permanently disabled and are unlikely to work again. Most people hold it through their super fund. According to MoneySmart, updated 29 July 2026, TPD cover inside super usually ends at age 65.

Policy definitions drive whether a claim succeeds. ‘Own occupation’ looks at your specific job. ‘Any occupation’ asks whether you can work in any role suited to your training, education, or experience, which is harder. Some policies use an ‘activities of daily living’ standard. Similar conditions can produce different outcomes depending on policy wording.

Timelines you can plan around

Under the Life Insurance Code of Practice, insurers should provide an initial decision within six months for lump-sum claims such as TPD. Law firms often quote a few months for straightforward matters, with caveats for delays such as waiting on medical evidence.

If you disagree with a decision, ASIC’s Regulatory Guide 271 gives superannuation trustees a maximum internal dispute resolution (IDR) timeframe of 45 days before a complaint can be escalated to the Australian Financial Complaints Authority (AFCA). Knowing this helps you follow up if a claim has stalled.

Do you really need a lawyer?

Not every claim needs a lawyer. Straightforward cases with clear medical evidence can sometimes be lodged directly with your fund. The APRA and ASIC data showing higher admittance for advised policies suggests guidance may help some claimants, particularly where definitions are strict or evidence is complex. It does not prove legal help causes a better result, and a lawyer is not a guarantee. You can also compare how an Australian firm publicly explains a no-win, no-fee approach, without treating that profile as advice or a recommendation.

Questions to ask before you sign

Before you commit, work through a short checklist:

• Can I have the full written costs disclosure to review?
• How is ‘successful outcome’ defined in this agreement?
• Does an uplift fee apply, and how is it calculated within the 25% cap?
• Who pays disbursements, and are they payable if I lose?
• Is any third-party funding involved, and on what terms?
• How is the risk of adverse, or other party, costs managed?
• When exactly does my cooling-off period end?
• What is the complaints pathway if I am unhappy?

Read the costs agreement and get advice tailored to your situation, since this article is general information rather than personal legal advice. If a firm advertises service promises, such as a 90-day guarantee, treat any such promise as that firm’s own policy rather than an industry standard, and confirm exactly what it covers.

Key takeaways

‘No win, no fee’ removes much of the upfront cost of engaging a lawyer, but it does not remove every cost. Disbursements and adverse costs can still apply. The law protects you through written agreements, a defined outcome, a five-business-day cooling-off period, a 25% uplift cap in litigious matters, and a ban on contingency fees. If a claim stalls, the 45-day IDR rule and AFCA give you somewhere to go. Read your costs agreement carefully and seek advice tailored to your policy.