WHAT IF THE INSURANCE COMPANY DOES NOT PAY “FIRST-PARTY” BENEFITS? – GRAND RAPIDS AUTO ACCIDENT ATTORNEY
First-party benefits are due thirty (30) days after written proof of the loss is submitted to the insurance company. In the way of proof, most companies require that you submit a copy of their claim form, along with appropriate wage stubs, hospital records and invoices, and billings from any other provided of services.
If the insurance company delays payment more than thirty (30) days after receiving reasonable proof of the particular loss, it may have to pay 12% interest on the amount due. If a Court later decides that the insurance company was unreasonable in failing to make a disputed payment, the Court can award the injured person punitive interest; it can also order the insurance company to pay the injured person’s attorney fee.
It is essential to provide complete proof of loss at an early date so that benefits are not delayed and interest begins to run. You should normally keep a copy of all records provided to the insurance company along with a copy of your cover letter listing what was provided and when. In this way, you can later prove that you fulfilled your obligation to the insurance company. Remember than one you have made a claim against the insurer, you cannot count on the company or its employees to look out for your best interests. You must protect yourself. It is a wise idea to have an attorney review any submission you make to the insurance company. This can be done on an hourly basis. A firm handling your third-party claim may be willing to review this matter at no charge to you.
Do not forget the “one year back” rule: if the insurer does not make prompt payment, you must initiate suit within one year of incurring the expense, or your right to collect it will probably be lost entirely.
KRUPP LAW OFFICES PC
GRAND RAPIDS AUTO ACCIDENT ATTORNEYS
161 Ottawa NW Suite 404
Grand Rapids MI 49503
616-459-6636 or [email protected]
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