How Insurance Companies Deny, Delay, Confuse and Refuse: New Report

by John McKiggan

Insurance companies use “dirty tricks” and “unethical behavior” to deny legitimate claims and boost their profits, according to a new report released by the American Association for Justice.

The report explains how insurers have:

…endeavored to deny claims, delay payments, confuse consumers with incomprehensible insurance-speak, and retroactively refuse anyone who may cost them money.

Although the report takes a look at the practices engaged in by American insurance companies, the insurance industry is multi-national in scope and many of the insurers exposed in the report, for example Allstate and AIG carry on business in Canada.

The report describes how:

Allstate gave employees who denied valid claims rewards such as portable fridges, and used a “boxing gloves” approach to policyholders who refused to accept lowball offers.

Here in Nova Scotia, Justice Walter Goodfellow of our Supreme Court just finished hearing a trial involving a constitutional challenge to our province’s Insurance Act. The law places a “cap” on the amount of compensation that innocent victims can receive for their pain and suffering if they have suffered a “minor injury”. The problem with the law is that the law defines almost every injury as “minor”; making it very difficult for legitimate innocent victims to receive fair compensation for their injuries.

When Justice Goodfellow releases his decision on the constitutional challenge we can expect the insurance industries’ “public relations” machine to kick into high gear, claiming that the insurance industry is losing money because of payments to innocent accident victims.

Don’t believe a word of it.

Related posts:

Why you may have a “Minor Injury” from your Nova Scotia Car Accident: Reason #3

Why the Insurance Company says you have a “Minor Injury”: Reason #2

Why the Insurance Company Says you have a “Minor Injury”: Reason #1

I have been representing victims of serious personal injuries for 18 years. I wrote The Consumers Guide to Car Accident Claims in Nova Scotia to help victims of car accidents in Nova Scotia get fair compensation for their injuries. You can get a free copy of the book by contacting me through this blog, visiting my website at or by calling me toll free at 1-877-423-2050.

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