Can insurance company deny a claim?

Posted: Tue Oct 28, 2008 09:44 am Post Subject:

Hey, you have heard it right that the insurance companies have the right to entertain or deny a claim. However, if you have made a rightful claim then they have no right to deny it, but if it has been a wrong/fraudulent claim then it'd be right for the insurance company to deny it.

The insurance companies have the right to investigate into the incident before acknowledging the claim and they will offer the amount that'll leave you more or less in a condition before the accident.

Posted: Tue Oct 28, 2008 10:07 am Post Subject:

Yup, the insurance company shouldn't deny a legit claim, but at times you may find the insurance company denying the rightful claim. Hence, its important to know your rights if you have got the claim denied.

When an insurance company denies the claim they are required to state the reason for denial in writing, if they fail to do so you have the right to contest their decision.

The insurance company is known to operate under bad faith, if it has denied a legit claim. You may know that the insurance company is operating under ‘bad faith'

• if they deny a covered peril
  
• Fail to take proper and prompt action against the damage
  
• Lengthen the claim process unnecessarily
  
• When its not enough helpful and refuses to translate the policy clauses properly to you.

Posted: Tue Oct 28, 2008 10:10 am Post Subject:

Well of course they can deny claims...no policy covers EVERYTHING...If you'd be more specific regarding what you fear would be denied then we can discuss that...this question is too open...

Posted: Tue Oct 28, 2008 03:00 pm Post Subject:

Your individual policy will outline what is and what isn't covered.

Throw some examples at us.

Posted: Tue Oct 28, 2008 11:11 pm Post Subject:

Up for the challenge Life?

Posted: Tue Oct 28, 2008 11:22 pm Post Subject:

Oh hell, why not.

I do enjoy when things get spicey...lol.

Posted: Wed Oct 29, 2008 04:20 pm Post Subject: car policy

Well, here's a 'good example'. My ex tried to get an auto policy at three different insurance companies. Because of a 'bad driving record', the first two said he was a "very high risk" and turned him down. The third one DID give him a policy.however......................he's on 'high risk' and his Liabilty (alone..) is $150.00 per month. he has a good, used vehicle.

Posted: Wed Oct 29, 2008 04:42 pm Post Subject:

Sounds about right. Ex has a bad driving record, therefore the risk is higher. Depending on how bad, we may have turned her down too.

Sounds like the third one might be a "non-standard" company.

But at least she got insurance right?

Posted: Wed Oct 29, 2008 06:05 pm Post Subject:

Insurance companies will only deny a claim if something illegal is involved or for something they are not responsible for occurs. Some drivers may have a pre-existing damage done to their vehicle and then may try to make a claim on it and find out the insurance company already knew of the prior damage and will not pay it. If you was to driver your car without a license or expired license or even if it is suspended or you let someone else driver who has the same problems and have an accident then you probably wouldn't get your claim covered. You can ask your insurance agent or company if there are any acts of nature that you are not covered by to decide if you would like coverage on these options. It is the law for auto insurance companies to pay a claim that a driver of theirs has caused that they cover for to pay it if it is legal and happen while obeying the laws.

Posted: Wed Oct 29, 2008 08:57 pm Post Subject:

If you was to driver your car without a license or expired license or even if it is suspended or you let someone else driver who has the same problems and have an accident then you probably wouldn't get your claim covered.