A consumer would have the right to sue an insurance company that had failed to pay a claim filed in a timely manner. By the same token, consumers have the right to sue any company that has refused to pay a claim filed, or has made bad faith claims.
Possible reasons for an insurance company’s failure to produce the expected payment on a claim
The policy purchased by the claimant did not cover the reported claim. There were misrepresentations in the application for coverage. The insurance company had not been notified about the accident in a reasonable amount of time.
The claimant had submitted a false or exaggerated claim. The insurer and adjuster had used a confusing explanation to hide the company’s refusal to pay the victim of the reported accident.
Situations that would give a consumer the right to sue the appropriate insurance company
• The same company had received claim, but had not scheduled any investigation, or had purposely delayed the investigation.
• The company had refused a claim, even though the liability of the responsible party was reasonably clear.
• The insurance company had delayed delivery of its acceptance of, or its refusal of the presented claim.
• The insurance company had offered no explanation for its denial of coverage.
The insurer had failed to deal with the policyholder, even though at least one claim was covered by the purchased insurance policy.
What would be the basis for any lawsuit that a consumer might file, after being denied the requested payment on a submitted claim?
Anyone that has purchased an insurance policy has made a contract with the company that has issued that same policy. Both the insurer and the policyholder are supposed to live up to the terms of that particular contract.
That contract demands the policyholder’s swift notification of his or her involvement in any relevant accident. In other words, involvement in an on-road incident should be reported to a car insurance company, or to one of the company’s agents.
The same contract calls on the insurer to arrange for adequate coverage of each policyholder, in order to secure the same policyholder’s financial stability. An insurer’s failure to provide such coverage would be viewed as a breach of faith, as per personal injury lawyer in Bradford.
Any consumer that has purchased insurance, and has not received the anticipated coverage has the right to sue for a breach of contract, which is also a breach of faith. Consumers that want to exercise that right can seek help from the proper department in the state government.
Although each state has its own laws, with respect to car insurance; all of them expect the insurers to honor the contract that was made between the policyholder and the insurance company.