Not all insurance companies have their policyholders’ interests at heart. You may have been dutifully paying your premiums only to run into unexplainable hurdles when the time comes for the company to pay up.
Your claim and subsequent compensation may be delayed or even denied. You may have to incur unplanned expenses, defeating the very purpose of having insurance.
Fortunately, the law protects you. Your insurer owes you a duty of good faith and fair dealing when handling a claim, and you need to take appropriate steps to protect your interests when an insurer doesn’t live up to their responsibilities. Identifying the various bad faith tactics will help you respond accordingly.
Common tactics
Your insurer may deny your claim without looking into it and providing sufficient reasons hoping that you will just let it slide. You may also get a lowball offer because the insurer misrepresented the facts of your case to pay less than you deserve.
Alternatively, they may delay investigating or acting on your claim. Your insurer could start making unrealistic and unnecessary requests for documentation to support your claim. As a result, you may have to wait for an unreasonably long time to get a decision on whether your claim has been approved.
All these are potential indicators of bad faith by your insurer. You should take appropriate action if you believe you’re a victim.
Protect your rights and interests
Should you suspect that your insurer is playing games with your claim, you need to seek counsel on the ideal way of handling your case. There are various legal options available for you in such a situation.
However, it takes an informed evaluation of the prevailing facts and the existing policy to determine the best legal response. That’s why having experienced legal guidance is key.