Insurance acts as a protective shield against unfortunate events and gives monetary stability when anything bad happens. However, it is pretty common for insurance companies to deny an insurance claim for which the insured has taken insurance coverage.
Many times, the insured person is left guessing as to why their insurance claim was denied. There have been instances when the claim was denied on totally unreasonable grounds. People pay premiums year in and year out and it really hurts when you don’t get your money when you actually need it. Insurance companies just decline the claim straight away. But the good news is that this denial is not the last word. You still have a course of action left at your disposal.
Options after insurance settlement claim denial
The insurance company has an obligation to act in good faith. This basically means that the insurance company must take all necessary steps to ensure that the claim is deeply investigated before approval or denial. Insurance companies often breach the contract of acting in good faith by not properly investigating the claim, making unwarranted denial of injury claims, and failure to negotiate a settlement.
If the denial is unjust, you must first go through the insurance policy document and then contact the insurance company in case of any discrepancy. Still, if the insurance company doesn’t give convincing reasoning as to why they chose to deny the injury claim, the insured at that point in time can consult a personal injury attorney. If you want a consultation for such unwarranted denials, Orlando Personal Injury Attorney is where you will get it. They will explain in detail whether or not your case has a chance in the court of law.
When can you take action against the insurance company?
- Breach of contract: The insurer presents the insured with the policy document which the insured has to sign. As and when the insured signs the proposal letter, both the parties enter into a contract with each other. No party is allowed to breach the contract. Doing so will call for legal action against the breacher. The insurance company is expected to do one thing only – pay out claims. If they fail to do so or deny the claim on unwarranted grounds, there is a breach of contract on the part of the insurance company. In such the policy document is comprehensively examined. If it is proved that the insurance company breached the contract, they will be liable to pay damages to the insured along will the insurance claim.
- Bad faith: A contract is made in good faith when both the parties are truthful about all the aspects of the contract. Bad faith occurs when the insurance company knowingly treats their customers in an unreasonable manner. Bad faith occurs when the insurance company doesn’t do what they were supposed to do according to the contract. If bad faith is established on the part of the insurance company, they will be liable to pay punitive damages to the injured and they will also be held liable for fraud.