Can I sue my insurance company for emotional distress? You expect your insurance provider to perform honestly and pay your claims when you pay your premiums.
However, sometimes, an insurance provider only accepts a valid claim or takes a long time to process it, which can upset policyholders.
This brings up a key point: is it possible to sue your insurance provider for emotional distress? The details of your case and the legislation in your jurisdiction are just two variables affecting the complicated answer.
The idea of emotional distress about insurance claims is examined in this article, along with what constitutes emotional distress and how to assess if you have a strong case against your insurance company for emotional distress.
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Now, let’s get started.
What Is Emotional Distress In The Context Of Insurance
Emotional distress is a condition of mental sorrow or suffering brought on by an experience or incident.
When you look at emotional distress from the perspective of insurance claims, you can define it as a severe mental or emotional injury suffered by a person due to his insurance company’s action or inaction.
It may include improper coverage rejection, excessive claim processing delays, or improper handling of a valid insurance claim.
Critical Factors of Emotional Distress in Insurance Claims:
Mental Anguish: Feelings of anxiety, dread, depression, or other emotions brought on by the actions of the insurance company.
Psychological Effects: Anger, powerlessness, or frustration brought on by unjust treatment or an unresolved issue.
To be eligible to file a claim for emotional distress, the person must show that the insurance company’s actions resulted in significant emotional anguish.
Can You Sue For Emotional Distress In Insurance Claims
It’s not easy to sue your insurance company for emotional distress. Generally, a policyholder can only sue for emotional distress when the insurance company acts in bad faith.
Under the law, insurance companies are liable to do things in good faith, including processing claims fairly, quickly, and, more importantly, within the policy term.
A lawsuit for emotional distress may be feasible if the insurance company’s conduct is determined to be willfully damaging or unjustified, such as rejecting a claim without good cause, not communicating effectively, or treating a claim improperly.
It can be challenging to demonstrate that the company’s actions caused emotional injury and emotional distress. Claims must adhere to strict legal standards.
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What Constitutes Bad Faith Insurance Practices
The main requirement in many jurisdictions for bringing an emotional distress lawsuit against an insurance provider is bad faith.
When an insurance firm treats policyholders unfairly or dishonestly, it is referred to as acting in bad faith. Several behaviors could be considered bad faith:
- Wrongful Denial Of Claims
It could be deemed a bad faith act if your insurance company rejects your claim for grounds unsupported by the facts or your policy.
For instance, you may be able to file a lawsuit if your auto insurance company rejects your claim for an accident because it says you were to blame, even though you have convincing proof to the contrary.
- Unreasonable Delays In Processing Claims
From our years of experience in insurance and claims, we know that some insurance companies deliberately and unfairly delay a policyholder’s claim for reasons only known to themselves.
This causes the policyholders great emotional and financial hardship. Some of these delays can be deliberate, as insurers use this tactic to avoid paying a claim or forcing policyholders into accepting an underpaid reimbursement because the whole thing already stresses them, and they don’t mind underpayment.
- Failure To Investigate Claims
Insurance companies are legally required to promptly and thoroughly investigate claims. If they don’t or make the inquiry wrong, they’ll often reject a claim or even pay a policyholder less, inflicting severe anguish.
Misleading Communication
Of course, an insurance provider may provide inaccurate or deceptive information about a claim or its coverage, resulting in needless confusion and worry on the part of an insurance policyholder.
How Can Emotional Distress Be Proven In Court
It can be difficult to prove emotional distress in a case against an insurance provider. In most situations, you have to show unequivocally that the insurance company’s bad-faith activities were the direct cause of your emotional distress.
In court, emotional distress is frequently demonstrated in the following ways:
- Documenting Emotional Suffering
It is already established that you can sue your insurance company if their actions led to your emotional distress; however, for you to be able to prove that their actions led to your emotional distress, you need to back your claim with some form of medical documentation.
In this case, this is where a certified mental health specialist would provide testimony that would support your claim; they must prove that such acts have had a hand in your emotional distress.
- Demonstrating The Insurance Company’s Bad Faith
As previously said, you must also demonstrate that the insurance company behaved in bad faith to prove emotional distress.
An excellent way to do this would be to send proof through internal corporate emails, call logs, or a history of grievances filed against the insurer for such acts of bad faith.
- Presenting The Impact On Your Life
The court will also consider how the insurance company’s conduct affected your personal and professional life.
Your claim for emotional distress may be supported if the insurance delays or denials resulted in loss of income, financial hardship, or worsened an already challenging circumstance.
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Can You Sue For Emotional Distress Without A Bad Faith Claim
It could be possible to file a lawsuit for emotional distress in some circumstances without having to demonstrate bad faith.
For instance, you may be eligible to file a tort lawsuit for emotional distress if an insurance company has committed exceptionally serious or deliberate wrongdoing, such as defamation, fraud, or misrepresentation.
These situations are uncommon, though, and would necessitate substantial evidence of the insurer’s malice.
What Are The Legal Remedies For Emotional Distress Claims
There are a couple of legal remedies available for emotional distress claims, especially if your lawsuit against an insurance company for emotional distress is successful.
We are going to go through some of the legal remedies below:
- Compensation For Emotional Distress
If you are confident and can prove beyond doubt that the insurance company’s conduct caused you emotional distress, you would be entitled to some form of financial.
The thing, however, is that the payment is not fixed and has the potential to fluctuate from one case to another. We also need to point out that such payments can, most of the time, be arbitrary.
- Punitive Damages
In case you do not already know, punitive damages can also be called exemplary damage. They are a form of legal penalty imposed on defendants in a case where they engage in a malicious act.
In this case, if the actions of your insurance company were found to be malicious and deliberate, you are then eligible for punitive damage as compensation.
This seeks to hold the insurer accountable for its conduct while discouraging a repeat of such an act in the future.
- Legal Fees
If you prevail, the court may mandate that the indamage provider cover your legal costs.
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Final Thought
The procedure of suing your insurance provider for emotional distress is complicated.
While this is feasible when the insurer has committed severe misbehavior or behaved in bad faith, strong evidence is needed to demonstrate emotional distress and the insurer’s involvement in its cause.
If you have a case, you should speak with an insurance law specialist to evaluate your case and decide on the best course of action.
By doing this, you can guarantee that your rights are upheld and that you are treated relatively by the conditions of your insurance policy.