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May 5, 2021

A Brief Guide on How to Resolve Disputes with Your Insurance Company


At a certain point in time, there might arrive disagreements with your insurance company. It can result from the amount due on a bill, the amount a company paid on a claim, or the non-payment of a claim. Although an insurance company helps you with your car and home insurance and minimizes any financial risks, there can be a possibility of a disagreement between you and your insurer.

These issues can be solved by taking careful steps. Before going for methods like mediation and arbitration, here are some important steps that you can adopt to resolve a dispute with your insurance company. 



Seek Help from an Agent:

You can hire a broker or agent when resolving disagreements with your insurance company. It is helpful as your agent will have an established relationship with insurance companies.

They are quite fast in resolving disputes as it can be done over the phone. You have to provide them with your policy number, copies of disputed bills, canceled checks, records of any phone, and any written correspondence.

Know Your Rights:

You should know what kind of laws your insurance company is regulated upon. There are rules for every insurance company stating what they can and cannot do in bill collecting, settling claims, and more matters.

Make sure to search more about what rights you have in terms of insurance policy and what you can do when violated.

 

Write a Letter:

After trying to communicate with words, you can go for a written letter to the managing authority. Write all the details of the problems you are facing and the right way to resolve the matter.

Prepare your documents like policy numbers, phone numbers, and other necessary documents.

 

Involve a Third Party:

If your claim has not been resolved through other means, you can involve a third party. You can do this by contacting your state's insurance department.

If it still does not help resolve the dispute, you can go for a court settlement with the help of your attorney. Your attorney will fight for your claim in the court trials.

 

Methods of Resolving Disputes:

Here are some methods of dispute resolution when you and your insurance company are unable to agree on certain terms.

Mediation:

A neutral mediator is involved in this informal process with a representative from the insurance company. This discussion can be discussed on the phone or in person. You or some other person acting as your representative should be present in all meetings.

It usually takes sixty days to complete from when your application is complete. You should file for mediation within two years of your company's refusal to compensate for your claim. After completing the process, the mediator will issue the report, which will identify all the details.

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Arbitration:

You should go for arbitration if your case is not resolved through mediation. Your side must fill the application. The eligibility criteria are the same as that of mediation, or you can apply after ninety days after the Report of Mediator.

You will have to discuss the pre-hearing conference with the arbitrator for discussion. Your arbitrator will try to avoid a formal hearing by trying to settle your case before it. The decision of the arbitrator is binding on both parties.

Neutral Evaluation:

You can go for a neutral evaluation to solve disputes with your insurance company by hiring a private evaluator. After the evaluator reviews the mediation process, he or she gives an opinion on what will happen if the dispute reaches the court.

Unlike arbitration, the evaluator's decision is not binding on both the parties, and they can go for other methods of resolution.

Variation and Revocation:

Both you and your insurance company can file for variation and revocation of an arbitration or appeal result. Some of the reasons for filing a variation include:

       In case when new evidence has been found.

       Change in your circumstances that affect arbitration results.

       When there is an error in the arbitration or appeal results.

You will have to pay a processing fee when submitting your variation form. Your insurance company has at least twenty days to reply to your request for a variation appeal. It can serve as a new binding arbitration order. 

The views and opinions expressed herein are the author's own and do not necessarily reflect those of EconMatters.

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