Have you ever tried to file an insurance claim and felt frustrated? Well, you’re not alone. Many people have had similar experiences with insurance companies, leading to a negative perception of the industry.
It is essential to remember that insurance companies are working to protect their earnings despite their generally kind appearance. Even the most reputable and well-known insurance companies use these dishonest practices to boost their earnings. Their main strategies are the three D’s: delay, deny, and defend. Therefore, you must become knowledgeable about them.
A CNN investigation explains how insurance firms devised this tactic to pursue injury claims involving collisions, even when there is circumstantial evidence of individual injuries and damage. Visit websites like www.nicoletlaw.com to learn how lawyers can tackle greedy insurance companies and help you get the compensation you deserve.
What is the 3D Strategy?
The 3D strategy stands for delay, deny, and defend. It is a common approach followed by insurance companies in handling claims their customers make. Let’s break down each of these elements to understand the strategy better.
Delay
Delay refers to the first step in the 3D strategy, where insurance companies deliberately prolong the process of reviewing and paying out claims. This tactic allows them to hold onto their funds for extended periods, annoying the victim. The delay is particularly excruciating for those who’ve suffered severe injuries like TBIs or burn injuries.
Occasionally, one will encounter arbitrary regulations that frequently refer to nonexistent or contradictory laws. This is done with the assumption that victims will get discouraged and defeated by repeated denials, feeling they have no option but to give up.
Deny
The next step in the 3D strategy is to deny claims whenever possible. Insurance companies will often use technicalities and fine print in policies to reject claims, even if they are valid. This helps them save money by not paying for claims and discourages customers from making future claims.
Insurance companies have a lot of options to reject a claim. They do this,hoping that those injured will accept the denial without protest.
Like postponing payment, denial works well because many people give up and become irritated. Each dollar that remains out of the pocket of an injured party benefits the insurance company financially.
Defend
In this final step, insurance companies will vigorously defend themselves against any lawsuits or legal action by victims whose claims have been denied. This is meant to deter clients from taking their claims further, even though it can be expensive and time-consuming for all parties.
If everything else fails, the insurance firm will use the third D to defend itself. This compels someone with a valid claim to file a lawsuit for their injuries. Several years may pass during litigation, or even longerif the case is appealed.
Due to legal provisions that make it more difficult to collect more than should have been paid out in the first instance, insurance firms have even more justification for withholding, delaying, and fighting.
Final Word
The 3D strategy allows insurance companies to maximize their profits and minimize their losses. By delaying, denying, and defending claims, they can hold onto more of their funds and avoid paying out large sums of money.
Additionally, it allows them to maintain a positive image by appearing to be actively investigating claims while still protecting their bottom line.
Awareness of the 3D strategy is the first step in protecting yourself against it. It’s important to carefully review and understand your insurance policy before signing it and to know your rights as a policyholder. If you believe your claim has been unfairly denied or delayed, you can seek legal advice from an experienced lawyer.
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