Getting protection against misfortunes is necessary to ensure our financial safety. With many types of insurance policies available today, getting the right one can be confusing. And without adequate knowledge of the insurance policies, big chances are you will end up signing and paying for something that you do not need. And the bad things do not stop there.
Your policy provider might deny your claim under a very vague term. When such case happens, the insurer has committed an act of bad faith denial. It is crucial to know the types of bad faith insurance claims so that you will not experience significant financial loss, and you will get the protection for which you have been paying.
Improper claim processing
Improper claim processing accurately states what it states. Your insurer might not process your claim. They might not directly deny your claim, but then usually, an insurer with bad faith will stall your claim until it is too obsolete to process.
This scenario often happens to property and compensation insurance. Even when all the prerequisite documents have been completed and submitted, a deceitful insurance company will always find their way to make their excuses. But you should know that on average, insurance companies are given sixty days by the authority to either deny or accept a claim. Longer than that, you should consider working with a lawyer.
Inadequate investigation
When a claimant files his/her policy, the insurance company has the right to investigate the case. And in a worst-case scenario, the investigation results in a bias and false conclusion.
When you suspect that a similar situation is happening to you, you should provide your evidence done by a credible third-party investigator. Do not hesitate to consult with a bad faith insurance lawyer. They can spot an unfair deal fast, and they know what the right responses are.
Suing against an insurance firm can be costly and legally risky. All insurance companies have their legal team ready to defend them in court. Reckless move in filing the lawsuit might not only make you lose your rights but also put you at the risk of getting sued back.
Offering less than what has been agreed on
The third common deceitful practice in the insurance business is when a claim seems to get accepted but with less value. This tactic is known as ‘lowballing’.
For example, you are a policyholder of an auto insurance company. Then one day, you got hit by a motorbike, and you need a paint job to repair your car. You file a claim, and your insurance company accepts it. But they pay half upfront and promise the rest later. And after your car gets repaired, you do not receive the insurance money.
When that case happens to you, do not hesitate to bring it to the court. If you let one misconduct to occur, other people might be their next victim.