Bad things happen from time to time, and that is why people sign up for insurance cover in the first place. Collecting compensation when you need it does not have to be difficult. After all, your insurance provider owes you a duty to act in good faith when it comes to a prompt response to your claim.
Despite this, it is not uncommon for an insurance company to act in bad faith when handling your claim. When an insurance carrier acts contrary to expectations, how do you know if they’re purposefully (and incorrectly) delaying or denying your claim? Here are three telltale signs
When the insurance company is trying to avoid communication with you after filing a claim, this could be a sign that they are walking away from responsibility. Failing to acknowledge receipt of your claims document or failing to move forward with the investigation could be a sign that your insurance company is acting in bad faith. Communication with your insurance provider should be free-flowing, frequent and professional at all times.
Delayed payment on valid claims
Sometimes, the insurance company may resort to using delay tactics with the goal of slowing down the process that leads to a fair settlement of your claim. This too could be a sign of bad faith. One of the delay tactics used by insurance companies is an unrealistic demand for documentation and evidence. Through delay tactic, the insurance company may be trying to frustrate you into giving up your claim or accepting a lowball offer altogether.
Denying your claim without justification
Sometimes, an insurance company may act in bad faith by denying your claim without cause. However, you can challenge this decision if you believe your claim is justified. While the insurance company has the discretion to deny your claim, they must justify this decision with valid reasons.
Having difficulty with your insurance claims can be quite frustrating. If you feel you are a victim of bad faith insurance practices, you have certain rights in these circumstances. However, the first and most important step is identifying the signs of bad faith.