Facts To Keep In Mind Before Signing Insurance Company’s Release Form

Insurance companies always ask a claimant to sign a release form, before the delivery of the agreed-upon compensation package. If a claimant refuses to sign, then there is no settlement.

Is there any benefit that a claimant might enjoy, if he or she refuses to sign the release form?

A claimant could keep negotiating with the insurance company, if the release form had not been signed. If the claimant had hired a lawyer, that same Personal Injury Lawyer in Mississauga could negotiate the terms of the release.

A close look at the reason that insurance companies demand the signing of a release form:

The insurer wants to have a guarantee that the claimant has relinquished any right to sue the defendant a second time, or to sue anyone else that might be held responsible for the underlying accident or the associated damages.

If someone that had been compensated for claimed damages did not sign a release form, that same individual would have the right to charge a different defendant with negligent conduct. That newer defendant might decide to file a charge against the insurance company (the original defendant).

In that case, the insurance company would become a 3rd party defendant. If it were forced into that role, the insurance company would have to pay more money to the person that had already received a compensation package.

What advantage might a claimant enjoy by having a lawyer negotiate the terms of a release?

In that way the negotiator (lawyer) could seek an extension of the deadline, as stated in the statute of limitations. That would prove beneficial if the claimant had reason to suspect the development of an injury, on the part of the driver or any of the car’s passengers.

Experienced lawyers know that a claimant should not start negotiating with the insurance company until the injured party has reached a state of maximum medical improvement (MMI). Obviously, a patient with emerging symptoms would not have arrived at a point of MMI. Hence, such a person should not start negotiating with the insurance company, regarding a fair compensation.

If an attorney had the chance to negotiate the terms of a release, that member of the legal community could win useful time for a client that had a developing injury. Insurance companies do not like to provide claimants with that increased amount of time.

If a claimant refuses to sign a release form, and then retains a lawyer, the insurance company has no choice, regarding the actions it can take. It must yield the time demanded. That could mean providing a claimant with time to file an additional complaint. Naturally, the addition of another complaint would translate into a request for more money.

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