Motorists in Ontario have a contractual relationship with their insurance company. If you have any type of insurance, you have a contract with the insurance company. It is well-established in law that parties to insurance contract are required to deal with each other in good faith at all times. You insurance adjusters who are appointed character file have a duty to act in good faith and honestly with people the insurer contracts with? In short, absolutely. The main duty of an insurance adjuster is to resolve legitimate claims made to the insurance company for insurance coverages pursuant to the contract for insurance. However, insurance adjusters also wish to settle and administer claims cost effective way possible. As a result, it’s adjusters often deny claims that should not be denied.
Why doesn’t insurance company and its adjusters have a duty to deal with their insured in good faith? Insurance companies have inherited interest in earning profits. The duty of good faith protects the insured against the financial interest of the insurance company. Insurance companies must act promptly and fairly when investigating, assessing and attempting to resolve claims made by its insured. The law imposes a number of requirements of insurance companies when they receive claims from their insured. These include the following:
1. The insurer must deal with the claim fairly; 2. The insurer must pay out claims in a timely fashion; 3. The insurer cannot be unreasonable in contesting claims or withholding payment of claims; 4. The insurer must act reasonably promptly at each step of the claim process; 5. The obligation to act in good faith applies to all steps in the claims process; 6. When assessing a claim and deciding to refuse, the insurer must assess the merits of the claim in a reasonable and balanced manner; 7. The insurer cannot obtain an advantage over the insured’s economic vulnerability or attempt to gain bargaining power by denying coverage, denying payments for delaying the process or payments claims.
When an insurance adjuster assesses the risk on a file, he or she must do so fairly and in good faith. If an insured can prove that the insurance adjuster (and hence the insurance company) acted in bad faith, a claim can be advanced for punitive damages against the insurer. When an insurance company act in bad faith, and refuses to deal fairly or promptly throughout the claims process, an insured may claim punitive and aggravated damages on the basis of bad faith.
If you have had a bad experience with an insurance company and believe it acted in bad faith, our accident, injury and insurance lawyers can assist you with your claim. Our consultations are free we work on many of these types of claims on a no fee until you win basis.
Contact us at 613-315-4878. Ottawa injury, accident and insurance lawyers. Www.ottawalawfirm.com