When Insurance Companies Do the Wrong Thing

 Posted on January 05, 2017 in Personal Injury

Insurance companies often claim that with them, you're in "good hands," or that they are on your side, "like a good neighbor." But when you need to make a claim, the opposite is sometimes the case, and it's therefore important for accident victims to get legal help promptly. Here are some real-life cases that show how insurance companies sometimes try to delay - or avoid - paying valid claims.

• Joe R. was badly hurt when the motorcycle he was a passenger on got in an accident. Under the law, Joe was entitled to collect money from the motorcycle driver's insurance company. But when Joe asked about the driver's insurance, the insurance company first said he was not covered. Then, after a long time passed, they told Joe he could receive money - but said the time limit for his claim had expired. Joe took the insurance company to court, and won.
• Julie H. was hurt when her car was hit by a drunk driver. The drunk driver's insurance company offered Julie a very small settlement though it knew she deserved a much higher amount. Julie took the insurance company to court, and won her damages plus an extra amount to punish the company for not promptly settling her claim for a fair amount.
• Barbara T. bought a $1000 life insurance policy on a family member. When the person died, Barbara made a claim, but the insurance company recklessly refused to pay her the $1000. Barbara took the company to court, and received her $1000 - plus a big punitive damage award. The court said the punitive damage award was needed to dis-courage this kind of wrongful con-duct by insurance companies.

These are just a few examples of insurance companies trying to avoid or delay paying valid claims, and offering unfairly low amounts to settle claims. Because of the way some insurance companies operate, accident victims should get legal help promptly. They should not speak to the insurance company, but rather refer it to their lawyer. Their lawyer will deal with the insurance company, and make sure the accident victim receives full - and prompt - payment for injuries and losses.