How long do insurance settlements take? 5 Common Reasons Why Your Request Is Delayed!

The common question of many people after claiming insurance is how long do insurance settlements take? It is crucial to understand that settlement might take some time as it depends on your insurance company and the type of accident you had.  

For every independent individual, it is necessary to have financial security.

how long do insurance settlements take

The majority of the people consider savings the option for any future unpredictable circumstances. What if your entire savings; are spent in an unfortunate event. It might be the money you have saved to buy a new house or for vacations. Wouldn’t it be sad that all your savings get used for paying hospital bills or for the damaged car?  

Insurance develops financial freedom; it means you will still have your savings and, the insurance company will help cover any accident that caused you injury or any other damage. This article; will help you understand; how long will the insurance company take to schedule your settlement after you have filed a claim. The duration of the settlement depends upon the accident’s seriousness.

 

The Process Of Issuing Your Cheque

How long do insurance settlements take? The process of insurance settlements takes time as it is a comprehensive procedure. Before paying your demanded money, insurers will thoroughly inspect your case. The company will analyze all of their policies and will carry out in-depth research of your case ruling responsibility of yours or another person involved. 

 

Step #1. Hire a lawyer and sign an agreement

If you have claimed for an accident, the settlement might take three weeks to a year.

We suggest you hire a lawyer to help you throughout the process. Dealing with the insurance company is hectic; having legal aid will speed up the process. But before the beginning of the procedure of issuing a cheque, the law firm will ask you to sign an agreement that states that you will not ask for further investigation once the case is settled.

 

Step #2. Investigation

After an agreement, your lawyer will carry out extensive research on the case. If it is a personal injury case from an accident, medical records are necessary for a quick settlement. Make sure to submit all your medical reports along with the hospital bills and doctor’s notes. The doctor’s comment on patients’ condition is vital in this process.

The company will deliver the cheque after medical treatment is completed or the victim is stable.

In case; you need additional treatment like surgery, physiotherapy, or any other medication, let your lawyer know along with the evidence, preferably a doctor’s note and lab reports.  Your medical record is an important aspect, in case of injury you will have to present all medical records, so the insurance company cannot claim that your injury is not serious. On the other hand, here’s how health insurance usually works.

 

Step #3. Payment

After discussing the treatment options with your doctor, your lawyer will evaluate the total amount, including the expense of further procedures. The records and evidence are then; forwarded to your insurance company. After confirming damages insurance company, will calculate the amount you should be given this includes hospital bills or the money required for any destroyed property, for example, your car or home.

The company takes at least three weeks to evaluate and decide the amount for your payment.

 

Reasons For Delay In Payment

Usually, the insurance company will send your cheque within one month to a year, following your appeal. According to the legislation, your insurance company cannot hold up your cheque without any legal reasons. If the company is taking time to issue you a cheque it might be one of these reasons given below. 

 

#1. Incomplete documents

Often the delay happens is due to incomplete document submission. There might be some important files that an insurance company wants you to provide. We strongly recommend you submit your complete documentation including, hospital bills and proofs. 

 

#2. Number of people involved

The process of issuing your cheque also depends upon the people that are affected by the accident. It is relatively easier to investigate if only one person is involved. Assuming that there are: many people involved, the payment might get delayed, as the company will have to consider all aspects before issuing your cheque.

 

#4. Unavailability

An important; factor to consider if the company is taking a lot of time to issue you payment is that they might be occupied with other cases. That is why you should always ask for updates and talk with your agent beforehand so you could talk about the process.

 

#5. Demand

Occasionally insurance companies are hesitant to pay you the amount you asked for; hence they slow down your payment process. It usually happens; when the company feels like you are demanding a lot compared to the accident you had. If the company is delaying the process for no obvious reasons, we suggest you take legal action for it. On the other hand, here are some more causes for the delay of payment of your insurance company.

 

Conclusion

How long do insurance settlements take? A variety of factors are in consideration for the payment of insurance settlements. The insurance companies are famous for delaying the payment: and often not agreeing upon the amount of money you require especially if you have suffered a huge loss.

However, hiring an attorney will speed up the process but, you will have to pay for the service. Appointing a lawyer for the case will make you in charge. Most insurance companies prefer settling the case; instead of taking the case to court. Regardless, here’s another article that might help, who does the spendthrift clause in a life insurance policy protects?

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