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Get Paid Fast! Accident Victims? Right to Prompt Payment of Insurance Claims

By Jim Reed

If you have been injured in an auto accident, a big question on your mind may be how quickly you will receive benefits for your claims from no-fault insurance. Few Americans have the wherewithal to carry a debt of medical costs.

How long will it take to receive benefits under no-fault insurance?

You will have your payment - or know that the insurance company is balking on paying - within 30 days. Payments of claims must be prompt, fair and made within that window of time. The insurance carrier may deny or disclaim coverage, but the insurer is required to give formal notice of the denial within 30 days.

What if my claim is disputed?

You may choose to take your claim to arbitration. Arbitration will speed up the resolution of your claim, but going into it means that any further claims you may have will also have to go into arbitration.

Arbitration may also affect whether or not you can pursue a lawsuit against the party that caused the accident.

You may choose to take your claims to court.  With a personal injury attorney’s help, you can settle or litigate the merit of your claims in court of law.

What penalty does the insurance company pay if my benefits were unfairly delayed?

If the disputed claim was resolved in your favor, the payments that are overdue to you are subject to an award of 2% interest per month.

 That’s nowhere near the interest rate on a typical credit card - so be careful about putting medical bills on a credit card account. Credit card interest on the amount will accumulate much more quickly than the penalty fee from the insurance company.

Knowledge is power

Want to know more? Check out my book, “Learn the Five Deadly Mistakes that can KILL Your Accident Case!” I offer it free to New York or Pennsylvania car accident victims. You should know that I limit my practice to the representation of injured persons only - I do NOT do any insurance defense work.

Thanks for reading, Jim

_________________________________________

James B. Reed, Esq.

Personal Injury & Malpractice Attorney

Ziff Law Firm, LLP

303 William St., Elmira, NY 14902

Tel. (607) 733-8866  Fax. (607) 732-6062

Toll Free 1-800-943-3529

mailto:jreed@zifflaw.com http://www.zifflaw.com

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Full post as published by New York Injury Law Blog on February 11, 2009 (boomark / email).