Insurer underpaid? Write an appeal!

Many people come to me in connection with a decision they have received from an insurance company to pay compensation which they believe has been significantly underpaid and does not cover all the costs involved in repairing the damage. They ask me what they should do in such a situation, whether it is possible to obtain higher compensation without having to sue the insurance company. In today's post I will try to explain when it is possible to lodge an appeal against an insurance company's decision and what elements such a document should contain.

How to draft an appeal against an insurance company's decision?

An appeal against a decision to pay compensation should be made in writing and addressed to the management of the insurance company. To ensure that your letter was received, it is advisable to send it by registered post with acknowledgement of receipt. In this way we will have a document certifying when the letter reached the addressee.

However, it is important to consider the content of the appeal before it is sent. It is on the arguments presented that it will depend whether the insurance company changes its decision and awards us higher compensation. Therefore, it is not enough to write that the amount awarded does not satisfy us, as we expected to receive more. At the very beginning of the appeal we should explain the reasons of our dissatisfaction, i.e. whether the amount of the compensation is, in our opinion, too low, because the insurance company did not take certain expenses into account (e.g. costs of renting a replacement car), or if it made too low a valuation. If the valuation is too low, we can provide the insurer with a comparative analysis comparing market prices with the amounts the insurer has offered us. We can provide printouts from the internet to substantiate claims. In the case of motor vehicle damage, it is also worth noting whether the insurer has made a valuation based on spare or original parts prices. In more difficult cases, it is advisable to use a valuation made by an independent expert. The better the appeal is substantiated, the greater the chance that it will be successful.

In addition to the substantive arguments, the appeal should contain the following elements:

• - the name and address of the insured person,
• - identification of the insurance company to which the appeal is addressed,
• - the place and date on which the document was drawn up,
• - policy number and damage number,
• - specifying the amount of benefit claimed,
• - the bank account number to which the compensation should be paid,
• - Signature.

According to the Act on the Processing of Complaints by Financial Market Operators and the Financial Ombudsman, an answer to the appeal should be given within 30 days, or 60 days in complicated cases, which the insurance company should inform you of. If no response is received within this period, the appeal is deemed to be justified and the claims indicated therein must be fulfilled.

Do you need additional legal assistance? Do you have questions about compensation? Write to me!