You have the right to sue your insurance company if they break or fail to follow the conditions of the policy. Not paying claims in a timely manner, not paying claims that have been properly filed, and making bad faith claims are all examples of common infractions.
Fortunately, there are numerous rules in place to protect consumers like you, and it is not uncommon for a policyholder to file a lawsuit against his or her insurer.
It’s difficult enough to deal with property loss, injuries, the death of a loved one, or any other calamity. It’s easy to feel overwhelmed when you have to fight your insurance provider on top of everything else.
Continue reading to discover the basics of filing a lawsuit against your insurance company for refusing your claim or other wrongdoing.
Can you sue after an insurance claim?
The basic rule is that you cannot bring a lawsuit after your damage claim has been settled. There are, however, exceptions. If you can prove that the defendant acted fraudulently or coercively, you may still be entitled to suit after settling. Discuss this information with your personal injury lawyer if you believe your settlement negotiation was engaged into in bad faith.
If you’re suing someone else, there’s an exemption to the rule that says you can’t sue after a settlement. When dealing with a single defendant, he or she is most likely just concerned with his or her own amount of liability. However, if another defendant is to blame for the accident, you may still be able to file a lawsuit against them. In some cases, you may be unaware that a second defendant is involved.
In a car accident case, for example, you may have reached a settlement with the at-fault motorist. You might find out later that a manufacturer’s flaw was partially to blame. You could launch a lawsuit against the manufacturer in this case, as long as you do so before the appropriate statute of limitations expires.
Can an insurance company refuse to pay out?
You will almost certainly be involved in an automobile accident at some point in your life. It could be your fault or the fault of the other motorist. When the other driver is at fault, his or her insurance company should pay for your medical bills, as well as repair or reimburse you for the worth of your car so you can replace it. Unfortunately, if you have a good claim and the other driver’s insurance company refuses to pay, you will need to pursue it or hire an insurance attorney. Some insurance companies take a long time to pay out compensation, but the issue will be resolved soon. Other insurance companies, on the other hand, may deny the claim and refuse to pay. The methods listed below can be used to persuade the insurance company to pay and resolve the claim.
Can I take my car insurance company to court?
If you don’t have legal expenses cover and pay the excess for a car accident that wasn’t your fault, you may need to get it back from the insurance company of the driver who caused the accident once the claim is completed. You can take the insurance company or the motorist to court if you have difficulties obtaining your money back.
If your insurance provider has handled the claim, they should be able to recover the excess for you.
A credit hire firm can also file a claim on your behalf if you are involved in a no-fault accident.
Why do insurance companies reject claims?
The most prevalent reason for claim denial is incorrect or missing information. The theory is simple: personal facts such as age, career, health condition, medical history, and so on determine the premium and risk coverage. The claim could be refused if the employer verifies the details and finds any deception. As a responsible consumer, it makes sense to offer accurate information in the insurance form, such as any pre-existing medical conditions, to avoid claim denial in the event of death due to that disease alone. It’s possible that the insurance company entered an incorrect detail by accident, so examine the policy documents as soon as you get them and notify the insurance company if there are any discrepancies.
Lapse in Policy
The coverage will lapse if the premiums are not paid by the due date. Insurance firms also give policyholders a grace period if they are unable to pay their premiums within the set time limit for whatever reason. If the policyholder fails to pay even after the grace period, the policy will lapse. The policy claim is usually only accepted if the policy is still active and has not lapsed owing to late or non-payment of premiums. Even though firms send messages and emails reminding policyholders to pay their premiums on a regular basis, it is a good idea to set your own reminders for premium payment and policy continuance.
Not Appointing or Updating Nominee Details
In India, insurance goods are seen as mandatory rather than necessary. As a result, we only acquire them to fulfill a contractual requirement, such as a tax savings or a penalty for not purchasing insurance. As a result, the policyholder does not fully comprehend the claim process and fails to appoint or update a nominee. Most of us, for example, receive our first insurance policy within a few years of starting our first work. The nominee in these insurance is usually the policyholder’s parent or mother. These facts are not updated in the event of the death of the policyholder’s parents or after the policyholder’s marriage. If a claim is filed, there’s a good chance it’ll be rejected since the appointed nominees may no longer be available, and the company won’t be able to figure out who to pay. As a result, the policyholder should update the nominee information as soon as there is a major change in the previous nominee status.
What happens if you owe an insurance company money?
- Insurance companies prefer to see that drivers can pay their bills on time every month, which means higher vehicle insurance premiums. Those who let their coverage lapse, even for a short period of time, will almost certainly experience a rise in their auto insurance rates when they renew.
- Repossession of a financed/leased vehicle: Most car lenders require that you retain full insurance coverage on the vehicle for the duration of the loan. If your car lender discovers that you do not have insurance on the vehicle, it may take it back.
- Your credit score may suffer: If you owe money on your auto insurance and your insurer turns the debt over to a collection agency, your credit score will most certainly suffer. This can make it difficult to obtain a credit card or a loan, and the negative mark will appear on your credit report for up to seven years.
How long does an insurance company have to investigate a claim?
The insurance company has roughly 30 days to investigate your claim in most cases. The statutes of limitations in your state will also impact how long you have to file and settle a lawsuit.
Why do lawyers take so long to settle a case?
Things might drastically slow down once a case is filed in court. The following are some common reasons why a case may take longer than expected:
- It’s difficult to serve the defendant or responder. The case cannot move forward until the defendant has been served with court documents in person. This usually entails a process server delivering the papers to the defendant by hand. This can take several months if the defendant is not at home or at work (or is simply very good at dodging service).
- It takes time to discover anything new. The process by which each side receives evidence from the other is known as discovery. The following are examples of common types of discovery:
- Interrogatories. The opposing party will ask a series of written questions. Within a certain amount of time, the questions must be answered in writing under oath (usually 30 days).
- Requests for documents or other items to be produced. This is precisely what it appears to be. It’s a formal demand that the other side produce paperwork, electronic data, or other tangible goods.
- Admissions requests are made. These are written declarations that one party requests that the other party confirm or deny under oath. In an automobile accident, for example, the plaintiff may request that the defendant admit to being involved in a motor vehicle collision on a specific date, time, and location.
- Depositions. A recorded, oral statement of a witness who is under oath is called a deposition. The proceedings may be transcribed by a court reporter, or they may be recorded on video, or both. The deposed witness could be a party to the action (a plaintiff or defendant) or a fact or expert witness.
If a party opposes to a discovery request, they can file motions with the judge and have hearings on them. That will take some time.
- The courts are overburdened. Hearings before the court can take a long time to schedule due to a full docket. Contranuances are a common occurrence.
Finally, if you have any questions concerning your case, do not hesitate to contact your lawyer or paralegal via phone or email.
How do you fight an insurance company?
- Step 1: Get in touch with your insurance agent or firm once more. You should study the claim you originally made before contacting your insurance agent or home insurance company to contest it.