Legal Recourse for Denied Car Insurance Claim Insurance is risky business.

To ensure high profits, insurance companies tend to take advantage of the insured person’s lack of knowledge regarding policy cover. Many a times, insurance companies deny your car insurance claim on false grounds or on omission of salient information. In such a situation, you can take legal recourse to claim insurance benefits mentioned in your policy disclosure agreement.

How to Handle a Car Insurance Claim Denial

For every insurance claim, there is an adjuster who investigates the grounds against which a claim is filed. In case of a denied claim, the adjuster files a written report citing effective reasons for the denial by the insurance company. A copy of this report is sent to you as well. What should you do on receiving a copy of a denial claim report?

Step 1: Your first step should be to read the report carefully and understand the reasons cited for denying the insurance claim. Now, compare the mentioned reasons with your policy disclosure agreement. Are the reasons in the denial report included in their original form in the policy document?

There are times when the insured person is unaware of the exclusions mentioned in the policy document and fills the claim on grounds that are not included in the policy cover. In such a case, the stand of the insurance company holds valid.

Step 2: If the reasons for denial are not mentioned in the policy document or if you think that you have a just reason against the denial, then lodge an appeal with the auto insurer for negotiations. During the negotiation phase, the insurance company invites you for a resolution. In the meeting, the insurance company’s representative cites reasons for denying of your claim.

Step 3: If you are not convinced with the negotiations of the insurance company, you hold the right to file for arbitration with the State Insurance Commission. This stage involves a third party, who will negotiate the terms between the insurance company and the insured.

Step 4: However, if you feel cheated even after going through all these steps, you can take legal recourse by lodging a suit against the insurance company with the State Insurance Commission.

Making the insurance company pay for your claim after a denial is a daunting task. However, if you have just reason and if you follow the above mentioned steps, no insurance company can refuse a valid claim. Having proper documentation and professional guidance is essential to pursuing the case against an insurance company. To this end, you should hire professional legal services for assistance.

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