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Bad Faith Insurance, also known as Unfair Claims Settlement Practices, is a legal term describing a tort claim that an insured person may have against their insurance company for its improper actions. In Nairobi, Kenya, there are legal obligations for insurance companies to adhere to good faith and fair dealing. This means an insurer cannot avoid their responsibilities of investigating, negotiating, and settling claims with the insured.
Dealing with insurance companies can be a complex process. An individual may need a lawyer in scenarios where they believe they have been unjustly denied a claim, offered an insufficient settlement, or experienced delays in settling the claim. Lawyers can help navigate these processes, representing your best interests, particularly when dealing with insurance companies that operate in bad faith.
Under the Kenyan Insurance Regulatory Authority (IRA), insurance companies are obliged to settle all justified claims promptly and fairly. Any deliberate low-ball offers, unwarranted denials, or unnecessary delays in claim settlement may constitute bad faith and could be actionable. The Consumer Protection Act also works to protect against unfair trade practices in the insurance industry.
Bad faith can manifest in different ways. Examples include: denying the claim without a reasonable basis, failing to promptly and thoroughly investigate a claim, or offering less money to settle a claim than what it is actually worth.
If an insurance company is found to be operating in bad faith, you may be able to claim economic damages, emotional distress, punitive damages, attorney's fees, and interest on the unpaid benefit from the insurance company.
A lawyer can help gather evidence, negotiate with the insurance company, represent you in court, and ensure maximum recovery.
No, not all claim denials constitute bad faith. Insurance companies may have a legitimate reason for denying a claim. You should seek legal help to understand whether your claim denial reflects bad faith or is a legitimate denial.
While it's possible to represent yourself, bad faith insurance is a complex area that involves understanding intricate provisions, exclusions, and endorsements. It would be preferable to hire a lawyer for any legal conflicts with insurance companies.
For additional resources, you can refer to the Insurance Regulatory Authority (IRA) in Kenya and the Kenya Law Reports for information on existing legal frameworks and landmark cases. Consumer organizations and legal aid services can also provide help.
If you feel an insurance company has acted in bad faith, seek the counsel of a lawyer specializing in insurance law. Conduct thorough research on suitable legal representation and document all correspondence related to your claim. Don't feel rushed into accepting a settlement as it may not fully cover your entitlements.
