Emotional distress claims against insurance companies arise when their actions inflict severe emotional trauma. This trauma can result from bad faith tactics, excessive delay, or wrongful denial of valid claims. These claims exist in the law, but require proper evidence, legal expertise and due process.
1. Understand what is meant by emotional distress legally
Can I sue my insurance company? for emotional distress? Yes, but it depends on the circumstances. Emotional distress covers psychological damage such as anxiety, depression, insomnia or trauma. In most jurisdictions, you must prove that your insurance company acted wrongfully and that its conduct directly caused your suffering. This often arises in cases of bad faith, where the insurance company is found to have acted unfairly or dishonestly towards the insured.
2. See if your state allows this type of claim
In some states, damages for emotional distress can only be awarded if they can be linked to a physical injury. In some jurisdictions, a claim for independent emotional distress is allowed, particularly in insurance bad faith cases. Review any applicable laws or case law in your state to understand the range of permitted actions.
3. Gather good evidence before you file
Strong evidence will make your chances of winning much higher. This includes:
- Correspondence or communication with the insurance company that shows lack of clarity, delay, wrongful denial of claims, or other inappropriate behavior.
- Medical or psychiatric reports confirms damage to your mental well-being.
- Any family members or friends who can testify that you have suffered from emotional distress.
The goal is to show that what the insurance company did caused you emotional pain based on facts.
4. Inform the insurance company in writing
Before filing a lawsuit in court, most jurisdictions require notice to the insurance company of your intent to make a claim. A letter must be drawn up stating:
- The wrongful conduct complained of.
- How have you been affected emotionally and mentally as a result?
- All the evidence that may be available to you.
This step tends to result in an acceptable solution. It also indicates that you have tried to discuss the matter among yourselves.
5. Processing a complaint with your state insurance authority
Insurance regulators investigate civil wrongdoing. They usually cannot award damages for emotional distress, but can substantiate bad faith activities on the part of the insurance company. Their findings can sometimes be very important if the case results in litigation. A complaint puts some pressure on insurance companies to act legally.
6. File the civil action in court
If the informal relationship does not yield a positive result, claims can be made against the insurance company. Have an attorney experienced in bad faith insurance matters prepare the complaint. In your complaint, you must state the following:
- Why does the court have jurisdiction and what laws apply in the situation?
- The specific wrongful actions on the part of the insurance company.
- A complete and detailed account of emotional distress, with such evidence as you may need to back it up.
- A request for compensation based on the damages your state allows
The court will assess whether the insurer’s conduct was due to malicious intent, recklessness or negligence towards your rights.
7. Be prepared for tests of credibility
In case of emotional distressyour testimony about the mental pain and suffering you suffered will be examined. This is most important as the insurance companies can be most extreme in claiming that there is no cause for the emotional distress or that the degree of the distress that occurred was small. To avoid this problem, keep detailed personal records documenting your emotional distress.
Key takeaways
- Emotional distress claims against insurance companies are required to have proof of the wrongful conduct, as well as the emotional distress.
- There are numerous laws and in such cases, jurisdictional laws should always be researched before filing.
- All details of communication and medical records, whatever they may be, should be included.
- Notify the insurance company of formal notice and where it may be necessary to involve the supervisory authority.
- The strength of a trial lies in the quality of the evidence, the good or bad faith involved, and the credibility of the witnesses.