Insurance timelines matter because insurance companies sometimes seek out ways to deny a claim even if you are entitled to the claim you are applying for.
Along with denying a claim, insurance companies may also try to delay an excessively long time.
Luckily, Section 22:1892 of Louisiana law provides that insurers cannot act in bad faith by excessively delaying the denial or payment of your claims. This statute was created to provide insurance companies a uniform period to review your claim, decide on your claim, and pay the claim or notify you of a denial of coverage.
With this law, Louisiana insurance companies have 30 days after receiving satisfactory proof of loss to make unconditional claims. This timeline of 30 days applies to Medical Payment, or Med Pay, claims, but what else do you need to know about these payment timelines?
From our team of Alexandria-based personal injury lawyers at Jones Law Partners, here’s what you need to know.
Med Pay Insurance Payment Timelines in Louisiana
Medical Payment, often called Med Pay, is coverage for medical bills that arose from a car accident. This coverage when purchased covers the insured’s medical bills in an automobile accident regardless of which driver is at fault.
Med Pay cannot be used to pay for pain and suffering arising from personal injury but can be used to pay bills for accidents related to medical treatment.
Med Pay coverage covers each person in a car for all accident-related medical bills up to $1,000.00 or $5,000. If you are seeking to use Med Pay coverage, you need to check with your insurance policy to see if it provides Med Pay coverage. There may be specific exclusions that apply.
Med Pay is often excluded in accidents that would be covered by workers’ compensation coverage. Therefore, you will not receive Med Pay when you can use workers’ compensation benefits for an accident.
Satisfactory Proof of Loss
You’ll need to provide your insurer with specific information pertaining to the formal claim of damages to prove you need coverage. This is referred to as Satisfactory Proof of Loss.
You can send your medical bills to your insurance company for Med Pay coverage, as this process constitutes satisfactory proof of loss in most cases.
Satisfactory proof of loss happens when you detail to your insurer your claim. After receiving your medical records and bills after an accident the insurance company has 30 days to compose the medical payments to the amount of Med Pay coverage provided in your policy.
Your car insurance’s failure to pay a Med Pay claim within 30 days after receiving satisfactory proof of loss will be deemed without probable cause. When there is no probable cause for failure to pay, your insurance company is liable for penalties and attorney fees.
Comparative Fault in Louisiana
Louisiana is a comparative fault state, which means that more than one party in an accident may be found to be at fault.
Sometimes, that means reducing the injured person’s damages by an amount equal to the share of fault assigned to that person.
For example, if you are found to be 10% at fault for your accident, the damages you are awarded will be 10% less than what you had requested in your claim.
Why Do Timelines Matter?
The timeline to process your claim is vital in keeping the order of claims.
The 30-day limit given to insurance companies to act on your claim maintains their order and keeps the process organized as you file your claim.
Your job is to be aware of the techniques insurance companies may use to avoid or delay paying your claim. If you are not being serviced correctly, you need to discuss your situation with qualified Louisiana accident attorneys who can help you receive the compensation you are legally entitled to receive.
Schedule a consultation with Jones Law Partners today
To schedule a time for an initial consultation so that your incident can be discussed in-depth with an attorney at Jones Law Partners, contact our office today by calling 318-442-1515.
In the event that a crash has left you immobile or hospitalized, don’t worry about traveling to our office as we will be more than happy to work to accommodate your needs. Contact us today to learn more.
