WHY DO WE GET INSURANCE?
Most of us buy insurance to protect ourselves and our loved ones from the various types of losses like economic losses, personal injuries, damages to our property, vehicular accidents, or the off chance that we are the intended targets of a lawsuit.
WHAT THE INSURANCE COMPANY OWES US.
Once we start our insurance and start paying the installments, the insurance company becomes liable to owe us a certain number of things. These obligations include responsibility for all the types of coverages for which we have paid premiums, the responsibility to act on any situation according to the terms of the policy and if there is an actual and valid claim then the company owes us to pay that claim according to the policy. Apart from these obligations, the insurance company also owes us to act in good faith on our behalf and to deal fairly.
WHAT IS BAD FAITH?
Sadly, claims that we have with the insurance company are not always fulfilled. There have been cases where an insurer has refused to act according to the terms of the policy or failed to uphold its duties, which it promised in the policy in a fair and honest manner.
HOW DO INSURANCE COMPANIES SHOW BAD FAITH?
In order to protect their profit, some insurance companies act in illegal and immoral ways. They start deceiving the public and come up with confusing and miscalculated language for their policy or official records so that they can get out of paying the claim. They also use diversionary tactics and unreasonable delays so that the claim will not be resolved. Another way that they deceive the insured is by offering a far lesser amount of settlement than the actual claim. These are some of the ways that insurance companies try to protect their money. However, the insured can protect himself or herself by bringing a bad-faith lawsuit against the insurance company and recover damages.
HOW ARE THE DAMAGES CALCULATED?
In bad faith insurance cases, the damages are determined not only according to the losses of the insured but also according to the wealth of the insurer.
REASONS FOR A BAD FAITH LAWSUIT.
There are several reasons why an insurer can be sued with a bad-faith lawsuit. These can range from not giving the proper and promised coverage to trying to escape negotiating a good faith settlement. Below are some of the reasons that result in the insurance company getting sued:
- Denying the insurance coverage that was promised.
- Not keeping the claimant in the loop on purpose.
- Not conducting a proper investigation into the claim.
- Denial to pay the claim.
- Not paying or refusing the claim within the allotted time period.
- Not confirming the payment during the allotted time period.
- Knowing that liability is clear but still refusing to settle for a fair and reasonable price.
- Offering a comparatively smaller settlement than the actual claim’s value.
- Not initiating the settlement negotiations for the claim.
- Not setting up a time limit.
- Using threats.
- Withholding sensitive information like policy limits.
WHAT TO DO IF YOU HAVE A BAD FAITH CLAIM
If you think you have a bad faith claim against an insurance company, then you need immediate consultation with a lawyer with expertise in bad faith insurance claims. This will ensure that you have a person on your side who knows how to tackle these situations. We, at Walker Texas Lawyer, have been dealing with these cases for a long time and we can help you with your claim and protect you from these deceptive techniques and tactics.