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Insurance Letters of Claim, Denial & Dispute of Liability

[dropcap type=”simple”]I[/dropcap]nsurance letters are legal documents. They play an important role in transacting business with insurance companies.  Insurance letters can be used in a variety of situations, such as the following:

  • In the event your insurance company denies liability
  • If there is a dispute over a claim
  •  In the event that you want to want to reject an offer from your insurance company

In any of the above instances, a properly written insurance letter is imperative. Insurance letters should cover all points clearly with use of a business tone. In order to assist you in writing a letter to your insurance company, we have provided a few examples below.

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Examples of Insurance Letters:

Regarding Denial of Liability

(Date)
Dear [Name of recipient]

[Policy number]

on [date], I received your rejection of my claim on the grounds of [state cause of denial of claim].  Please refer to the policy terms, which state that [quote policy]; hence, I am entitled to my claim.

I am enclosing an independent report from an expert proving that the [mention cause of denial of claim] was not caused by [intentional neglect, careless use, etc.].  I hope this report can assist the review process of the rejection of my claim. Please respond at your earliest convenience.

yours sincerely,

[Singnature]

Legal Viewpoint: An insurance policy is an agreement between the company and yourself. You are entitled to question the rejection of a claim if you believe their decision has been made in error.

Regarding Dispute over Claim

Date
Dear [name of recipient]

[Policy number]

Last [date] I submitted a claim for [describe damage] that occurred on [date].  You have rejected the claim based on [cite cause].

To substantiate the validity of my claim, I have enclosed an independent report from an expert to further prove that my policy covers the claim.

I believe that my claim is justified, as clearly defined in the policy, and my claim was unfairly treated.  Unless you can provide some proposals within 14 days, I intend to seek assistance from the Disputes Tribunal.

Yours sincerely,

[Singnature]

Legal Viewpoint: If your claim is less than $12,000 and if the company agrees, you can refer your complaint to the Disputes Tribunal or the Insurance & Savings Ombudsman after you have gone through the complaints process of the company. 

Regarding Rejecting an Offer

Date
Dear [name of recipient]

[Policy number]

Thank you for your letter dated [date] offering [mention amount] for the [loss, damage, etc] of my [mention property].

However, I believe your offer is substantially below the assessment of the item in question.  Please refer to the valuation [form] prepared by the [name of valuation or assessing officer] that specifies that the item [mention property] is valued at [amount].

Please reconsider your offer in view of the enclosed supporting evidence.  I look forward to hearing from you soon.

Yours sincerely,

[Singnature]

Legal Viewpoint: Since an insurance policy is a legal contract between you and the company, you have the right to question the rejection of your claim if you believe your claim is being treated unreasonably.

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