When you are responsible for the injury or accident experienced by another person, they have the right to lay a personal injury claim. The claimant may choose to sue the defendant for compensation or not, usually the person responsible for the accident.
Meanwhile, most defendants rely on insurance companies to handle the case, as they have a better experience. Defendants rely on insurance companies to deny the claim or offer a lower charge than the required settlement.
Whether you are a claimant or defendant, understanding the role of insurance companies in personal injury claims is expedient. This will help you understand insurance and legal policies relating to injury cases. It will also help you relate better with an insurance company to avoid complicating any existing issue.
Below are some of the major roles of insurance companies in a personal injury claim.
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Investigate the Situation
An insurance company will thoroughly investigate the situation to confirm the claims. It would confirm the extent of the liability and the damages caused to the claimant. A professional insurance company will check for loopholes against the claims during the investigation. The insurance company will also gather necessary information about the accident, especially when witnesses are around.
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Negotiate with Claimants
Based on the evidence gathered from the investigation procedure, an insurance company will negotiate with the claimant. The company will also examine the cost of damages, including medical expenses and lost wages.
The company will generally negotiate with the complaint to reach an agreement while protecting the defendant or policyholder’s interest. You must understand that every insurance company’s decision will always be in its client’s interest. Thus, you may consider hiring a competent lawyer to stand in for you.
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Defend Their Clients
The primary role of insurance companies is to always defend policyholders by providing legal representations. An insurance company may hire a lawyer to defend its clients if the situation is complex and the claimant doesn’t agree to negotiations.
This is why a claimant needs a lawyer with sound knowledge of legal procedures and charges. An insurance company will also make sure to submit any evidence that could defend its client, including videos, photos, and damage reports. In your best interest as a claimant, make sure every settlement negotiation is done directly with your lawyer.
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Pay or Deny Claims
An insurance company may deny a compliant claim, especially when no substantial evidence supports the claims. The outcome of the investigation will also determine if the company will pay for the damages or deny it. However, an insurance company will always state its reasons for denying the claims. Wherein your lawyer will also examine whether the reasons are valid. When neither of the parties is ready to settle with an agreement, the issue will be taken to court for further hearings.
