Insurance Bad Faith: A Quick Guide
People depend on insurance companies to be there when they need the aid the most. Whether it is a medical insurance for a serious illness or a car insurance for a car crash. After all, people do not pay for insurance premiums every now and then because they feel like it. They do this because they know that these insurance companies will help them in future purposes.
But sadly, many companies are not doing their responsibility when the unthinkable events happen. They look for reasons for them not to be liable of any benefits to their customers. When these insurance companies are trying to excuse from the said responsibilities they are requires to perform, they are acting in bad faith.
Insurance bad faith in a legal term is “describes a tort claim that an insured person may have against an insurance company for its bad acts.” In most countries such as United States, insurance companies are bound a duty of good faith and fair dealing to those they insure. It is known duty of every insurance companies to do such performance to their customers. An individual can file a case against the insurance company when they fail to do so. Aside from the fact that they did not uphold their end of the bargain, insurance companies can be sued for civil wrong doings.
The insurance will be complied to pay for damages because of bad faith aside from the original responsibility they opt to perform, in the end.
Health insurance, auto insurance, life insurance and long term disability insurance are the types of insurance carriers that can be held liable when acted in bad faith. Insurance carriers are expected to act in good faith and honor everything in the contract that are agreed upon with their policy holders. Trying to look for a way out of the due performance they opt to do is acting in bad faith and they can be sued because of this.
An insurance company that acts in bad faith is liable to pay for compensation for the emotional and financial distress it cause. You will be needing a good lawyer to calculate the damages for you. This lawyer will help you with everything about the responsibility of the insurance company and to bring the case to court if needed.
It is important to take action when you read the policy and feel like you are not given then coverage that should be given to you as a policy holder. Look for a lawyer around and fight for your right.
Source: law firm