It also goes the other way. I just spoke with a 30year insurance excec/investigator. A small child climbed up on a concrete water fountain and it fell and killed the child. There was no coverage due to it being rental property or an expired policy. They paid $1M anyway to avoid a trial that would make the insurance co look very bad. So appearances have a great effect in a courtroom...probably more than laws and contracts do.
So next time would your insurance co pay a claim like that or would they fight it? I say they still would not pay on an identical claim because there is little difference between $40K and $140k to an insurance co when they are out to set a precedent.
NO! Insurance companies fight cases they think they can win. It has little to do with a case having merit or being bogus. Since when does an insurance company offer what a jury would award, since you think what a jury decides is just and equitable?The lesson is for the insurance consumer to learn. Insurance companies fight bogus claims, win or lose.
I don't need to see a file. I looked the man in the eye and he told me about a case he had. People do not lie in real life nearly as much as they do when they speak anonymously.I wouldn't comment on that one without seeing the file but I had one that went that way. I inherited from a claim rep who had been fired for incompetence. The file was so screwed up that by the time we got into the courtroom the plaintiff's lawyer painted a very disturbing picture and scared our corporate executives out of a million dollars on a $250,000 claim where a total loss fire occurred two days after the policy lapsed.
As to your example above, insurance companies pay when they get scared and they won't pay unless they have to. It has little to do with what is fair, just, equitable or "bogus."
Insurance companies do take it in the shorts sometimes but they make it back on the masses who do not seek legal help.You're right. Both those claims should have been fought to the mat. But it wasn't my decision to make on the fire claim and the cards were stacked against us.
Insurance companies decide what cases to fight off databases, not their consciences. Databases of similar cases tried and databases of the attorney they are up against.
Simply put: An insurance company will pay on a bogus claim they think they will lose in court...and they won't pay on a justified claim they think they can beat in court.
The more severe and permanent your injury is, the more pain and suffering you will experience. Insurance companies typically multiply the amount of medical bills by a number between one and five to calculate “pain and suffering.” The more severe and permanent the injury, the higher the multiplier.
It's fairly common knowledge (although one might quibble with the specific numbers mentioned.