How To Proceed If the Insurance Company Denies Your Claim?

Now, if you’ve been involved in an accident and want to seek compensation of the damages that you’ve had to incur as a result of said accident, you’d normally file a claim to your insurance company. In the best case scenario, you are going to be assigned an adjuster who’s going to conduct an investigation of the accident and adjust your compensation accordingly. If you are in luck, the compensation is going to be comparatively relevant and you are going to get a good amount of money. However, that’s not always the case.

In certain situations, the insurance company might as well deny you the claim and refrain from awarding you with compensation. This is something which is not so uncommon. That’s why it’s important to be well aware of your options.

Regulations for insurance It is very important to be aware of the fact that you have options available even if you’ve been denied the claim or you disagree with the company on certain aspects of the claim such as the amount, most commonly. The insurance industry as a whole is governed and regulated by the FSCO (Financial Services Commission of Ontario) as well as by the Insurance Act. They set forth the rules and regulations for all of the insurance companies to follow.

There is one particular section – section 280 of the Insurance Act which states that either one of the parties can effectively refer a disagreement or the insured party should refer to a mediator. If the mediation fails, then both parties are entitled to go ahead and proceed with arbitration or court procedure. The mediation is usually a non-binding proceeding in which someone outside of the argument is going to hear the statements of both parties and make a decision for them. The arbitration procedure is the same but the difference is that the decision of the arbiter is binding for both parties.

Now, as per the general legislation of Ontario, you will have two years to file a claim, start mediation or arbitration. So, it’s safe to say that even if the insurance company goes ahead and denies your claim for compensation or the amount is widely inappropriate, you still have quite a few options in front of you. This is something incredibly beneficial because it provides you with a large path to maneuver and be flexible in negotiations. The best thing you can do is hire an experienced lawyer to handle all of the negotiations and procedures. This is going to ensure that everything is handled perfectly and up to the highest industry standards – something that can very much get you the much desired compensation. The main reason is that the lawyers understand the nuances of the laws and regulations pertaining to Insurance Act. This will ensure that the will be with you at every step, ensuring that you get the justice that you deserve.

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