Personal Injury Insurance Claim Settlements & Plan
The Canadian law and order allow you to claim monetary compensation if you have been involved in an accident. Of course, this will have to be of no fault from your side.
When you intend to claim compensation form insurance companies, you need proper planning to confirm the settlement. Claiming money from insurance companies can be very tricky. You will be dealing with business professionals whose main aim is to settle on a minimal amount.
Therefore, you must understand and know everything about personal injury insurance claim settlements & plans. Read through the article to better understand the overall concept.
What Is Personal Injury Insurance: Understanding the Basics
When we are talking about a post-accident injury claim, a person has 2 options. Under Canadian law, you have the opportunity to seek monetary compensation for your personal injuries and any other pain sufferings in 2 different ways.
One is filing a claim and negotiating a compensation settlement with the insurance company. And the other one is filing a lawsuit.
Now, there are certain differences between the 2 approaches. In this article, we will strictly discuss negotiating on a settlement with the insurance company. But what is the difference between claiming compensation and filing a lawsuit?
The major difference between the 2 approaches lies in the involvement of the negligent party. In filing a compensation claim, you go into negotiation and settlement with the insurance company.
Here, the at-fault party has no involvement. Only the insurance company gives you monetary compensations to recover from the accident.
On the other hand, in a lawsuit, you file a case against the negligent party. You go to court and recover any damages from the accident from the at-fault party.
When you have been involved in an accident where you had no fault, it will lead to personal injury insurance claim settlements.
The Process of Personal Injury Insurance Claim Settlements
One of the major features of insurance claims is that it is much simpler than going to court for lawsuit settlements with the negligent party. Here is the full process of claiming personal injury compensation from insurance companies.
- The first step is to file the compensation claim to the insurance company of the opposition party. You should be quick and honest in filing the claim. The majority of the insurance providers will require you to file a claim within 48 hours of the accident. It is recommended to hire a lawyer for the overall process.
- Once you have filed your claim, the insurance company will now investigate. The investigation stage involves looking into your medical bills, police records, checking personal property damage, interviewing witnesses, and talking with you over the filed claim.
- The insurance company will be expecting a demand letter from you. This letter involves several facts, including details about the accident and personal injuries. You should also include the amount of compensation you are expecting.
- The insurance company will now appoint an adjuster. The adjuster will examine your demand’s validity and merits by comparing it with the second stage’s investigated findings. The adjuster may also inspect his or her behalf, and several other factors may affect the decision.
- In the final stage, you go in a negotiation period with the insurance company. The adjuster from the company’s side and the lawyer you hired will be present in the negotiation. If things go in your favor, you accept the settlement. Otherwise, you can reject the settlement offer of the insurance company.
Personal Injury Insurance: Types and Benefits
A personal injury insurance claim has 2 plans, and we will also look at some of the benefits you can get once you receive your compensation from the insurance companies
Types of Personal Injury Insurance Plan
Insurance companies offer a variety of services to their customers. Here are 2 policy plans that are significant for people with a personal injury insurance claim.
Individual accident insurance
When an accident takes place, the individual insurance plan works in favor of an individual only. This includes compensation for permanent or temporary damages and any other impairments.
Group accident insurance
People avail of this type of insurance plan for offices. When an employer wants to provide his or her employees with insurance compensation, the employer goes for a group accident insurance plan. This is more affordable than individual insurance. As a result, this insurance is preferable for small or big organizations.
Benefits of Personal Injury Insurance Plan
A person involved in a devastating accident can acclaim the following benefits from the insurance company.
The benefit of hospital bills
If you are hospitalized with personal injuries from the accident, the insurance plan covers medical bills during the period you received treatment.
In the situations when one of your close relatives or loved ones has passed away, the insurance claim covers relevant costs.
Any permanent or partial disablement resulting from the accident is paid under the company’s insurance policy.
If there is a dependent child on the accident victim, the insurance claim covers all the child’s educational expenses for a certain period.
5 Factors Affecting Personal Injury Insurance Claim
When you are filing a claim to the insurance companies for personal injuries, you should know that the ride will be tricky. Here are 5 crucial factors that can affect and possibly cause you any compensation in a personal injury insurance claim.
Was the defendant at fault?
Of course, when you are claiming compensation where you have to prove the other party’s fault, this is the most important factor. You must be completely adamant that the defendant is the negligent party here. You did not fault your own. If things go even on a slightly different approach, you will lose the case.
The severity of your injury
This is obvious that if you were not hurt badly, the compensation may not even come in your pocket. However, we do not want anyone to be injured severely, which alters one’s life. Nevertheless, your injuries’ severity and seriousness, both physical and mental, affect the insurance claim.
The time between the accident and the insurance claim
Some states in Canada have a strict time limit to issue a compensation claim to the insurance companies. If you are too late, your claim may not even be considered by the country’s legal system. Eventually, you will end up with damages to cover from your pocket.
Damages to property and mental health
If your car or other personal property has been damaged, you can claim a large sum of compensation. For this, you will have to be able to calculate the damage amount properly. Having a lawyer is the best option.
Evidence and witnesses
Both your lawyer and the insurance adjuster will investigate the case thoroughly. As a result, they will gather evidence and acquire witness statements. If your case is not in your favor, the evidence and witnesses gathered will not be strong for negotiation. Therefore, you will end up losing valuable money.
Injuries from road accidents can be extremely damaging and life-threatening. As a result, every person should know about personal injury insurance claim settlements & plan beforehand. The process is simple, but you need to be on your toes to win against insurance companies.